Russian firms stop supplying coal to Ukraine

Russian companies have stopped supplying steam coal to Ukraine, the Interfax-Ukrayina news agency reported on Nov. 24, citing its own sources. Later that day, the information was confirmed by one of two importers of steam coal, energy holding DTEK (DTEKUA). It stated that it made all the required prepayments to its Russian partners and is expecting that they will fulfill their obligations, as cited by Interfax. Ukraine’s Energy Ministry confirmed the same day that supplies of Russian coal have ceased to DTEK and Centrenergo (CEEN UK).

Three of DTEK’s nine power stations (and two out of six located outside Donbas) are designed to consume anthracitecoal, which is only produced on Ukraine’s territory that is controlled by the Russian-backed separatists. Two of three Centrenergo’s power plants also consume anthracitic coal. Having been one of the biggest exporters of anthracite coal globally, Ukraine now has to import this coal from somewhere since power plants consuming anthracite coal accounted for 21% of total electricity production in Ukraine in 2013. Russia is also among the top global exporters of this type of coal.

Alexander Paraschiy: While the reasons for disrupted coal supply are not clear at the moment, we can assume that this is a new stage of Russian pressure on Ukraine’s energy security. Also, maybe in this way, the Russian government is trying to force Ukrainian companies to buy anthracite coal from the mines located on the occupied territories of Ukraine. Such deals might be used by the terrorist structures that control these territories to finance their budgets. This coal finds no demand in Russia, so such attempts to force Ukraine’s hand would be a natural tactic for the Kremlin.