Russian coal sanctions hit Ukrainian metallurgy hard
The reduction in coal supplies from the Russian Federation, which since June have been carried out only under special permits, has led to a reduction in the production of Ukrainian coke and, as a result, the production of steel and cast iron.
The business publication Kommersant writes about this, a PolitNavigator correspondent reports.
It is noted that in July, coal supplies to Ukraine tripled, to 400 thousand tons, compared to the previous month amid an increase in shipments from large exporters. However, shipments in July are 50% lower than last year, and overall, since the beginning of the year, the backlog of exports compared to 2018 is 1 million tons (51,6%).
At the same time, the publication’s interlocutors among coal companies refuse to talk about how the mechanism for coordinating applications for coal supplies to Ukraine works.
“The reasons are political; there is a task to reduce volumes. There is no need to look for economic reasons,” said one of the interlocutors.
According to the Ministry of Energy of Ukraine, coal reserves in the warehouses of thermal power plants at the beginning of September amounted to 688,4 thousand tons, which is 2,2 times lower than last year’s figures.
Senior analyst at Dragon Capital Denis Sakva says that the reduction in coal supplies from Russia has led to a decrease in coke production.
“If 917 thousand tons were produced in May, then in June - 769 thousand tons, in July - 798 thousand tons. Accordingly, the production of iron and steel fell from 1,8 million tons in May to 1,6 million tons in June and 1,7 million tons in July,” Sakwa said.
As PolitNavigator reported, earlier the Russian Federation in response to Ukrainian sanctions decided to take retaliatory measures by banning exports a number of goods to this country.
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