Friday

29th Sep 2023

EU mulls coal embargo on Russia, but still spares oil and gas

  • A ban on coal imports will be discussed as part of the fifth package of sanctions on Russian over its invasion of Ukraine (Photo: Wikipedia)
Listen to article

EU ambassadors will discuss a new package of sanctions on Wednesday (6 April), including a ban on coal imports worth an estimated €4bn per year.

"This will cut another important revenue source for Russia," EU commission president Ursula von der Leyen told MEPs on Tuesday during the plenary session in Strasbourg.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The proposal also includes a ban on four key Russian banks, including the country's second-largest (VTB) and restrictions on Russian vessels from accessing EU ports.

"We are working on additional sanctions, including on oil imports, and we are reflecting on some of the ideas presented by the member states, such as taxes or specific payment channels such as an escrow account," von der Leyen said, referring to a previous proposal presented by Estonia.

Until now, the EU has issued four packages of unprecedented sanctions on Russian banks and companies over its invasion of Ukraine.

But restrictive measures have found a way to circumvent Moscow's two main sources of income internationally: oil and gas exports. And these purchases are likely to carry on regardless, handing the Kremlin cash to continue its war of aggression in Ukraine.

The EU has been unable to agree on sanctions targeting energy sectors given the high dependence of some member states on Russian fossil fuels.

But Europe is less vulnerable to a reduction in coal imports than a cut in oil or gas supplies — since solid fossil fuels such as coal account for less than 10 percent of the EU energy mix.

EU countries that have shown reluctance to impose energy sanctions such as Germany seem ready to back the coal embargo — although it is still unclear whether recently re-elected Hungarian prime minister Viktor Orbán will support such move.

Russian imports accounted for about 19 percent of the EU's coal use in 2020. By comparison, the 27-bloc imported over 40 percent of its gas and nearly 37 percent of its oil from Russia.

Nevertheless, it is important to differentiate between metallurgical and thermal coal trades.

The Russian share of EU imports of the type of coal used to generate electricity — thermal coal — is almost 70 percent, while the dependence on Russian metallurgical coal used in iron and steel production is lower, according to an analysis of the Brussels-based think-tank Bruegel.

And countries like Germany and Poland are highly dependent on Russian coal imports.

Poland, for example, imports approximately 9.5 million tonnes of coal annually, mainly from Russia.

"To compensate for these shortages, Poland will have to import coal from other sources in order to prevent interruptions in the supply of energy," a Polish diplomat told EUobserver.

Experts said the coal embargo proposal responds to the gradual approach the EU has been defending in the sanctions regime against Russia since the beginning of the war.

"EU leaders want to have another economic weapon in hand should Russia escalate even further," Nick Sitter, a professor at the Central European University and BI Norwegian Business School, told EUobserver.

The EU, said Sitter, needs more time to prepare for Russian gas cuts. But any sanctions really aiming to damage the Russian economy must clearly include a gas embargo, he added.

It's not easy being green — and cutting Russian gas

There are growing concerns that the EU's push for alternative gas sources will simply lead to burning the most-polluting sources as Russian gas gets phased out. But the EU climate chief says there should be no taboos.

Opinion

Eastern Europe: Between hammer and anvil

For peace in Europe in the short term, Ukraine must win the war. But for peace in the long term, Germany must be contained and Russia must break apart.

MEPs seek full embargo on Russian energy

MEPs called for an immediate and "full" embargo on Russian oil, coal, nuclear fuel, and gas in response to atrocities in Ukraine. But a coal ban is the only likely move for now.

EU’s €500m gender violence plan falls short, say auditors

The 'Spotlight Initiative' was launched in 2017 with a budget of €500 million to end all forms of violence or harmful practices against women and girls in partner countries, but so far it has had "little impact", say EU auditors.

Latest News

  1. Poland's culture of fear after three years of abortion 'ban'
  2. Time for a reset: EU regional funding needs overhauling
  3. Germany tightens police checks on Czech and Polish border
  4. EU Ombudsman warns of 'new normal' of crisis decision-making
  5. How do you make embarrassing EU documents 'disappear'?
  6. Resurgent Fico hopes for Slovak comeback at Saturday's election
  7. EU and US urge Azerbijan to allow aid access to Armenians
  8. EU warns of Russian 'mass manipulation' as elections loom

Stakeholders' Highlights

  1. International Medical Devices Regulators Forum (IMDRF)Join regulators, industry & healthcare experts at the 24th IMDRF session, September 25-26, Berlin. Register by 20 Sept to join in person or online.
  2. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  3. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  4. International Medical Devices Regulators Forum (IMDRF)Join regulators & industry experts at the 24th IMDRF session- Berlin September 25-26. Register early for discounted hotel rates
  5. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch
  6. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Join EUobserver

Support quality EU news

Join us