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Russian Coal Shipments to Ukraine Fall

Coal News - Published on Wed, 10 Jul 2019

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Argus reported that deliveries of Russian coal to Ukraine will fall sharply this month after Moscow implemented new regulations. This could limit coal production in Russia, given that many companies' stocks are already at record highs. And there is little scope to redirect volumes. Under new regulations that came into effect on 1 June, companies must obtain permits from Russia's economic development ministry to export to Ukraine.

A source at one mining company said that "Some railcars that were loaded with coal bound for Ukraine in May are currently idled at border crossings because of the new regulation. This situation has also resulted in delays to transit shipments."

Some suppliers said that state-run Russian Railways has approved a minimal volume of coal for delivery to Ukraine this month.

A source at a Russian producer said that "RZD only sanctioned 12,000 tonne of our 200,000 tonne export application for Ukraine this month, but there is still no authorisation from Russian customs even for this small volume. We do not expect the situation to improve in the second half of June and have been forced to cut output."

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Posted By : Ratan Singh on Wed, 10 Jul 2019
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