Sunday, May 28, 2023
HomeHeadlinesEU Ban on Russian Coal to Be Pushed Back to Mid-August -...


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

EU Ban on Russian Coal to Be Pushed Back to Mid-August – Sources

European Union envoys are set to approve on Thursday a ban on Russian coal that would take full effect from mid-August, a month later than initially planned, two EU sources told Reuters, following pressure from Germany to delay the measure.

The phase-out of EU imports of Russian coal is the cornerstone measure in a fifth package of sanctions against Russia that the EU Commission proposed this week, as a reaction to civilian killings in the Ukrainian town of Bucha.

Once approved, it will be the EU’s first ban on any import of energy from Russia since the start of what the Kremlin calls its “special military operation” in Ukraine on Feb. 24.

Oil and gas, which represent far bigger imports from Moscow, are still untouched.

The EU Commission had initially proposed a wind-down period of three months for existing contracts, meaning that Russia could effectively still export coal to the EU for 90 days after sanctions were imposed, according to a document seen by Reuters.

But that period has been extended to four months, the sources who are familiar with the discussions told Reuters on condition of anonymity.

That followed pressure mostly from Germany, the EU’s main importer of Russian coal.

With sanctions expected to take effect later this week, or early next, after publication in the EU official journal, Russian companies will effectively be able to export coal to the EU until mid-August under existing contracts.

Diplomats had held two meetings on Thursday to sort out other technical issues, including the enforcement of an entry ban for Russian vessels at EU ports, which has caused concerns mostly in countries with big shipping sectors, such as Cyprus, sources said. However, approval of the whole package was not in doubt.


One diplomat said most coal contracts were short term, and a wind-down period of 90 days would have allowed most of them to be concluded without the need for cancellation, avoiding legal risks.

Some contracts however last longer than one year.

Much of Europe’s buying of Russian coal is in the spot market, rather than long-term contracts. Those spot purchases would be halted immediately after sanctions are imposed.

Despite being slightly watered down from the initial proposal, the EU’s planned ban on Russian coal is more ambitious than Britain’s, which has said it planned to ban coal imports from Russia by the end of the year.

The EU Commission has estimated the coal ban could cost Russia 4 billion euros ($4.36 billion) a year in lost revenue.

The Commission declined to comment.

The EU ban is expected to boost global imports of non-Russian coal, with prices potentially going up, although non-EU importers may benefit from lower prices for Russian coal.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Dorian LPG sees Q1 revenue more than double year-on-year

Dorian LPG reported its financial results for the three months and fiscal year ended March 31, 2023. Highlights for the Fourth Quarter Ended March 31, 2023 Revenues of $133.6 million.Time...

Navios Holdings Posts $14.5 Mln Net Income in Q1

Navios Maritime Holdings Inc., reported its financial results for the first quarter ended March 31, 2023. Navios Holdings owns (i) a controlling equity stake...

BW LPG posts ‘strongest quarterly performance on record’

BW LPG has recorded its ‘strongest quarterly performance on record’ in the first three months of 2023. The company was boosted by strong exports...

ONE, Wan Hai agree to pay civil penalties to FMC

Ocean Network Express (ONE) will pay a US$1.7 million civil penalty to avoid a formal investigation by the US Federal Maritime Commission (FMC) for...

Nikolaus H. Schües elected BIMCO President

BIMCO has elected Nikolaus H. Schües , CEO and owner of Reederei F. Laeisz,...

Baltic Dry Bulk Index Ends Worst Day In Over Three Months

The Baltic Exchange’s main sea freight index declined the most since mid-February on Thursday...

Maritime UK appoints new Chief Executive Officer

Maritime UK, the umbrella organisation for the UK’s maritime sector, has appointed Chris Shirling-Rooke...

Baltic dry bulk index extends slide for 10th straight session

The Baltic Exchange’s main sea freight index of shipping rates for dry bulk commodities...

Baltic index hits over two-month trough on lower rates across vessels

The Baltic Exchange’s main sea freight index slumped to its lowest level in over...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...