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Home Coal Demand

Embargo on Russian coal supplies to EU extended with ban on shipping coal worldwide

Editor by Editor
5 months ago
min read1 min
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On August 10, the day the embargo on Russian coal supplies to the European Union came into effect, the European Commission made clarifications, according to which the ban also applies to the transportation of coal from Russia to anywhere in the world by companies from the EU. This ban includes the provision of insurance and financial services performed by EU companies, regardless of the origin of the logistics company.

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The announcement came as a surprise to market participants, especially European shipowners and insurance companies.

The chairman of the sanctions committee of the largest international group of P&I Clubs (IGP&I), which includes mutual shipping insurance clubs, said the initiative creates significant difficulties for insurers.

According to a letter, the British club sent to other IGP&I members, most of the clubs fall under EU jurisdiction.

All group clubs, including those registered outside the EU, rely on an insurance program that depends directly on the participation of reinsurers from the European Union.

The embargo on Russian coal supplies to Europe was approved by the European Union as part of the fifth package of sanctions. The EU believes it will affect 25% of all Russian coal exports.

Source: CAA

Tags: CAAcoal pricescoking coalglobal coal demandKuzbass coal productionRussian coal productionworld coal market
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