Ukraine imposes sanctions against Russian coal supplier
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, Unian agency 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 the source.
It is noted that 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. This year, the two largest power generation companies that consume thermal coal have contracted anthracite from South Africa (DTEK) and the United States (Centrenergo).