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Russia may benefit from trade rift between China and Australia

RT | December 16, 2020

Russian coal suppliers could boost their exports to China, as the world’s largest coal buyer is reportedly curbing shipments of the commodity from Australia amid escalating tensions between the two countries.

The developer of the largest Russian coal deposit, Elga, announced on Tuesday that it created a joint venture with a Chinese shipping company to promote Russian coal on the massive Chinese market. The project between Elgaugol and GH-Shipping is set to satisfy China’s growing demand for high-quality coking coal.

The deal is set to help boost Russian coal supplies to China from one million tons this year to 30 million tons in 2023, and the developer could potentially further increase annual imports to 50 million tons. The joint venture is also expected to contribute to the ambitious goal of the Russian and Chinese governments to significantly increase bilateral trade turnover, as it would increase the volume of trade between the two countries by $5 billion per year.

“The supplies of coking coal from Elga will replace a significant amount of Australian and American coal of similar quality,” Elgaugol Director-General Aleksandr Isaev said.

Another Russian producer, Mechel, previously said that it was planning to increase exports of coal to China amid Beijing’s restrictions on Australian imports. In November, the shipments rose by 13 percent, and are set to jump by 25-30 percent in December, Mechel CEO Oleg Korzhov said as cited by Russian media.

Tensions between the two countries have been growing for around three years, after the Australian government began limiting Chinese investments in the country. In 2018, Canberra added fuel to the fire when it banned China’s Huawei and ZTE from its 5G rollout. The most recent escalation occurred when Australia pushed in April for an international inquiry into the origins of the coronavirus outbreak.

Earlier this week, Chinese state-linked media reported that the nation’s top economic planner gave domestic power plants the greenlight to import coal without clearance restrictions from several countries “except for Australia.” While Beijing has not officially confirmed the restrictions, Canberra has already urged the Chinese government to clarify the reports.

This week’s reports are not the first to allege that China is quietly banning coal imports from Australia. Last month, several million tons of Australian coal worth more than $500 million were reportedly stuck in Chinese ports.

December 16, 2020 - Posted by | Economics | , , ,

4 Comments »

  1. I really don’t know what is behind China’s anger in regard to Australia, but maybe, the “Imposition of Economic Sanctions” which is quite common in the West, has suddenly become an attractive proposition to the bullying Chinese?

    Like

    Comment by brianharryaustralia | December 16, 2020 | Reply

  2. Morrison thinks he’s on a winner. Preempting Washington to be nice to him for reasons unknown to the rest of the country. He has antagonized the PRC for absolute no reason. And this from a centre rightist pro business party wrecking their best export market. During the Cold War when Australia did not recognise the PRC at all at the UN that current government managed to sell wheat to the ‘hated communists’ no worries. But they never carried on like Morrison. He seems anodyne but is a Hillsong Christian. And that makes him a clone if not a drone under a really ‘foreign’ influence. They speak in tongues you know, so maybe ‘they’ ‘know’ what he’s on about. We don’t.

    Liked by 1 person

    Comment by almostvoid | December 17, 2020 | Reply

    • “Never trust a religious leader who tells you how to vote, nor a Politician who tells you how to pray”….Anon

      Australia’s Prime Minister is a Ratbag Idiot, who believes that there is an invisible man in the sky, and he has given this ‘Pentacostal’ organisation,(That doesn’t pay a cent in tax) $43,000,000 for FREE……..while he screws people receiving ‘Benefits’…..

      Like

      Comment by brianharryaustralia | December 17, 2020 | Reply

      • ‘Benefits’. Indeed. I did stints on the dole. But not as a life style, more a breather between jobs. Though I know a few too many who screw the system for their perennial retirement, the hippies in Bellingen were classic: hated the system but… though personally if you don’t want to work: don’t. I don’t even mind any being on ‘benefits’ because there will never be full employment. Nor is it something for everyone. When my mother retired, she said: well that was a waste of time. Some even get creative. And the Amerikan alternative does not bear thinking about.

        Liked by 1 person

        Comment by Lutz Barz | December 24, 2020 | Reply


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