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Ukraine imposes sanctions against Russian coal supplier

Wed, 08.11.2017 09:38



The Ministry of Economic Development and Trade of Ukraine has introduced sanctions against Russia’s Yuzhtrans (Shakhty, Rostov region), which is one of the largest suppliers of anthracite to Ukraine, in particular for the needs of the power generating company Donbasenergo, as stated in the ministry’s order No. 1583 of October 30, Liga.net reports.

Restrictions have been introduced based on a request by the Security Service of Ukraine and will come into force in 40 days, according to Liga.net.

"Over the actions that could harm national economic security," the order says. "Yuzhtrans" will be barred from carrying out foreign economic activities with business entities in Ukraine. Yuzhtrans LLC is part of the Yuzhnaya Coal Company, which owns mining assets in the Rostov Region (Sadkinskoye Mine Administration). Yuzhtrans is one of the largest suppliers of anthracite coal from Russia. This coal is burned at thermal power plants. The company also supplies anthracite for the needs of steelmaking and other industrial enterprises in Ukraine (various grades).

From May to October 22 of this year, Yuzhtrans, according to the Russian Railways, supplied more than 100,000 tonnes of anthracite to Donbasenergo. This is the third largest volume among the suppliers of thermal coal to Ukraine after DTEK group (mine management Obukhovskaya) and VostokUgol holding (Pechora Coal Company).

Ukraine in January-October 2017 boosted coal imports in monetary terms by 1.8 times year-over-year (y-o-y), to US$2.151 billion, according to the State Fiscal Service of Ukraine. The major supplier of coal over the period under review was Russia, accounting for 55.7% of total supplies worth $1.2 billion, it said. It is followed by the United States (25%, $546.8 million) and Australia (5.4%, $116.4 million).

Coal imports from other countries were estimated at $289.8 million. The country's coal exports to Russia in the 10 months amounted to $48.7 million, Slovakia ($33 million), Turkey ($2.6 million), and other countries ($3.9 million), it said. As UNIAN reported, Ukraine started facing an acute shortage of coal since the summer of 2014 as a result of hostilities in the east of the country. It completely lost control over some areas in Donbas with coal mines. After that, the country began to import coal.

In 2016, Ukraine reduced spending on coal imports by 10% from 2015, to $1.467 billion.

Source: UNIAN

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