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‘US can’t replace Russian coal supplies to Europe’ proposed sanctions fail to pass

Samizdat | April 6, 2022

The US coal mining industry is unable to expand production to replace Russian coal on the European market, the country’s biggest exporter said on Tuesday.

The comment follows a proposal by the European Commission to impose a ban on coal imports from Russia as part of a wider package of sanctions on Moscow over the conflict in Ukraine.

“I don’t see any ability for the industry to expand production. It’s like looking at a sweet dessert that you just can’t reach,” Ernie Thrasher, chief executive officer of Xcoal Energy & Resources LLC., the US’ biggest exporter, told Bloomberg.

The US is among the world’s top five coal exporters, and sells most of its coal to India, Brazil and South Korea.

According to Thrasher, most of the US coal output has already been sold under long-term contracts and there are few spare tons to deliver to Europe. With coal being the dirtiest fossil fuel, there has been little investment in new capacity, he explained, adding that tight labor markets and supply-chain bottlenecks caused by the coronavirus pandemic would also make it difficult to deliver extra tons for export.

According to media reports, potential buyers from some EU countries have already approached Indonesia and Australia, the world’s largest thermal coal exporters. But those countries have limited capacity as well. The EU wants to move away from Russian supplies, which meet 70% of Europe’s demand for thermal coal.

Shares of US coal miners surged after the European Union announced its sanctions plan against Russia on Tuesday. Coal prices in the US have been on the rise, surpassing $100 a ton last week for the first time since 2008.

‘EU fails to agree new Russia sanctions’

EU policy makers failed to agree Wednesday on a new package of sanctions against Moscow, including a ban on Russian coal imports, Reuters reports, citing its sources. The latest round of economic restrictions was proposed by the European Commission earlier this week.

Persons familiar with the matter explained the fiasco citing “technical issues” that needed to be resolved, including on whether a coal import ban would affect existing contracts.

The sources noted that it was not clear yet how the issues will be resolved, but the EU hopes to reach a compromise at a meeting on Thursday.

April 6, 2022 - Posted by | Economics, Russophobia |

1 Comment »

  1. the immature clowns in usa govt need to stop trying to bully countries and actually try for peace for a change. however control freaks thrive on mayhem.

    Like

    Comment by chrisirish67 | April 8, 2022 | Reply


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