Sales of Russian coal stopped after the start of the fifth package of the sanctions of the European Union. The largest mining company in Russia “SUEK” has not shipped coal since mid -August, writes Bloomberg with reference to its sources.
New restrictions from the EU entered into force on August 10. Now European companies are in charge of providing insurance and financial services in the supply of Russian coal not only to countries around the world.
Now companies in Russia are looking for alternative exports, but they will be expensive and long for implementation. This will lead to an increase in fuel prices in the near future.
The Kemerovo Region suffered the most from new sanctions for Russia. Her economy is on the verge of collapse, because coal cuts stood up. This territory accounts for 60% of coal production, about 80% – coking and 100% – some particularly valuable grades of coal. In total, 91 thousand people work at the coal enterprises of Kuzbass, while 20% of the working population of the region live in cities depending on one enterprise.
before the sanctions, Russia was part of the three largest coal exporters in the world and controlled about 17% of world supplies.