Ukraine nearly doubles spending for 2017 coal imports, half from Russia

Ukraine imported 19.8 mmt of coal in 2017, a 26.7% yoy
increase, the Interfax-Ukraine news agency reported, citing the State Fiscal
Service. Ukrainian importers spent USD 2.7 bln for this coal, which is an 87%
yoy surge, the service reported.

More than half (56.6%) of the imported coal was
supplied by Russia, while supplies from the U.S. and Canada were 24.9% and
6.6%, respectively.

Evgeniya Akhtyrko: Ukraine’s higher demand for imported coal is result of falling domestic
production that was prompted by the government’s trade blockade imposed in
spring 2017 on the coal-rich, occupied districts of Donbas. In 11M2017,
domestic coal production fell 13.6% yoy to 32.0 mmt. We estimate that about
half of the coal import volumes was coking coal, which is used in iron and
steel production, and which Ukraine has a chronic deficit of. In the big
picture, the overall goal of energy independence from Russia remains elusive
for Ukraine.