Ukraine faces new obstacles importing Russian coal

OREANDA-NEWS. Ukrainian imports of Russian thermal coal remain limited — although no formal restrictions have been introduced — Ukrainian state-owned energy firm Centrenergo and private-sector company DTEK said.

New deliveries of coal from at least two Russian producers — Kuzbasrazrezugol (Kru) and Stroyservis — have been brought to a standstill because Russian state-owned railways operator RZD has not authorised new applications for Ukraine-bound coal deliveries since 21 November, when it stopped several trains transporting coal to Ukraine at overland border crossings. Recent deliveries have been of outstanding November shipments that were blocked at the border last year.

RZD has not introduced any restrictions on Russian coal rail shipments to Ukraine and these deliveries continue as usual, the company said.

Ukraine imported close to 140,000t of Russian coal on 1-11 January and 50,000t in December, which accounted for the remainder of a cargo that had been waiting in railcars at border crossings since November, the Ukrainian energy ministry said.

"Centrenergo has received no coal shipments from Russia in January, despite having a supply contract," Centrenergo said today.

DTEK has also experienced difficulties receiving coal shipments from Russia. "We are receiving only small shipments that had been stopped on Russia-Ukraine border at the end of November, but we cannot import new shipments because RZD is not authorising new applications [for coal transportation]," DTEK said.

Centrenergo and DTEK are contracted to receive 120,000t and 500,000t, respectively, of Russian coal this month, deputy energy minister Yuriy Zyukov said.

The government is looking for additional thermal coal imports from South Africa, Australia and Vietnam, and aims to break its reliance on Russian imports. Centrenergo's parent company Ukrinterenergo is negotiating with UK-based trading firm Steel Mont for further deliveries of 5,500 kcal/kg thermal coal from South Africa. The price, laycan and volume of future deliveries are still under discussion, the firm said.