After the ban on Russian coal, Europe faces the “price storm”

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This comes after the countries of the Union gave companies Operating in the 27 countries, four months to replace Russian coal, starting from last April, to start implementing the decision as of this month.

And last July, the British Department of Commerce announced a ban on imports Russian coal As of August 10.

Russia owns 15% of the world’s coal reserves, according to the annual report of the company "BP" About energy, Russian coal supplies account for 45% of imports European Union With some countries relying on it in particular; Like Germany and Poland, which use it to produce electricity.

In pursuit of the Russian coal ban, European countries imported 7.9 million metric tons of thermal coal in June, more than doubling year-on-year, according to shipping services data. "Braymar".

However, International Energy Agency data indicates that coal It remains by far the world’s largest source of electricity generation, providing about 38 percent of global electricity need, outperforming natural gas and renewable energy.

Russia exported 238 million tons of coal in 2021, with 90 million tons of that volume going to OECD countries, according to the US Energy Information Administration.

Electricity price increase

Agency quotes "Dice" The Director of the Russian Center for Energy Efficiency, Ekaterina Kvasha, said that the ban imposed by the European Union and the United Kingdom on imports of Russian coal may lead to an increase in electricity prices in Europe.

explained "kvasha" Coal accounts for about 15 percent of electricity generation in Europe, with Russia accounting for half of all imported thermal coal.

Europe will resort to Australia or Indonesia, to compensate for the absence of imports of Russian coal, but the price will be higher due to logistics services and the general increase in the price of coal in the market, according to the Russian official.

But the German Coal Importers Association does not expect supply bottlenecks in Europe despite the ban, as coal is available on the global market. The main suppliers in the future will be the United States, South Africa, Australia, Indonesia and Colombia.

And about the fate of Russian coal, she pointed out "kvasha" He indicated that those quantities suspended as a result of the ban can be redirected to the markets of Southeast Asia, China and India.

Pressure.. and expected increases

Regarding the impact of the decision on the European interior, the director of global macroeconomic research at the British National Institute for Economic and Social Research, Corrado Macchiarielli, said in statements to Sky News Arabia, that Russia accounts for 47 percent of solid fuel imports, primarily coal, while the United States accounts for 47% of solid fuel imports, led by coal. The United States has 18%, and 14% for Australia.

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pointed "Macchiarelli"indicated that 4 European countries depend more than others on Russian coal imports, led by Germany, Poland, the Netherlands and Italy, while the Union buys its imports of Russian coal by about 4 billion euros annually.

The economist feared that the energy bills for European citizens would rise, in the absence of preventive measures, which would cause increased pressure on citizens’ incomes, in addition to the contribution of the growing demand from the EU countries to a significant increase in coal prices in global markets.

In Germany, the government introduced new energy-saving measures, including banning private swimming pools from being heated in the winter, making unused spaces in large office buildings unheated, as well as turning off lights at tourist attractions, and Cologne dimming after-hours street lighting. 11 p.m. Hanover lights out historic buildings and public fountains.

Berlin decided to reopen closed coal plants rather than shutting down the remaining plants by the end of the decade, as previously planned.

Quotes "Foreign Policy" About the Co-Founder and CEO of the Consulting Firm "gas vista" Leslie Balti, saying that going back to coal is a must "no escape" and will remain "factor" To ensure energy security.

Punishment for Europe

In turn, the CEO of the Center clarifies "Corum for Strategic Studies" In London, Tariq Al-Rifai, special statements by"Sky News Arabia"The problem of banning Russian coal is the same as the problem of banning gas imports, as the European Union, especially countries such as Germany and Italy, depend mainly on Russian coal.

And he said: "If this policy continues, where will alternative coal come from with the rise in prices, and this is a question mark, given that China is the world’s largest consumer of coal with about 60 percent of global production, then India and then European countries, and Russia is one of the largest producers of coal around the world".

trusted "Al Rifai" All these policies come to try to punish Russia, but they will not succeed because the reaction will directly affect the European economy more than the Russian one, and the European citizen will bear this bill.

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This comes after the countries of the Union gave companies Operating in the 27 countries, four months to replace Russian coal, starting from last April, to start implementing the decision as of this month.

And last July, the British Department of Commerce announced a ban on imports Russian coal As of August 10.

Russia owns 15% of the world’s coal reserves, according to the annual report of “BP” on energy, and supplies of Russian coal constitute 45% of imports. European Union With some countries relying on it in particular; Like Germany and Poland, which use it to produce electricity.

In the process of enforcing the Russian coal ban, European countries imported 7.9 million metric tons of thermal coal in June, more than doubling year-on-year, according to data from Braimar shipping services.

However, International Energy Agency data indicates that coal It remains by far the largest source of electricity generation in the world, providing about 38 percent of global electricity need, outperforming natural gas and renewable energy.

Russia exported 238 million tons of coal in 2021, with 90 million tons of that volume going to OECD countries, according to the US Energy Information Administration.

Electricity price increase

The Russian “TASS” news agency quoted the director of the Russian Center for Energy Efficiency, Ekaterina Kvasha, as saying that the ban imposed by the European Union and the United Kingdom on imports of Russian coal may lead to an increase in electricity prices in Europe.

Kvasha explained that coal accounts for about 15 percent of electricity generation in Europe, with Russia accounting for half of all imported thermal coal.

Europe will resort to Australia or Indonesia, to compensate for the absence of imports of Russian coal, but the price will be higher due to logistics services and the general increase in the price of coal in the market, according to the Russian official.

But the German Coal Importers Association does not expect supply bottlenecks in Europe despite the ban, as coal is available on the global market. The main suppliers in the future will be the United States, South Africa, Australia, Indonesia and Colombia.

Regarding the fate of Russian coal, “Kvasha” indicated that those quantities suspended as a result of the embargo can be redirected to the markets of Southeast Asia, China and India.

Pressure.. and expected increases

Regarding the impact of the decision on the European interior, the director of global macroeconomic research at the British National Institute for Economic and Social Research, Corrado Macchiarielli, said in statements to Sky News Arabia, that Russia accounts for 47 percent of solid fuel imports, primarily coal, while the United States accounts for 47% of solid fuel imports, led by coal. The United States has 18%, and 14% for Australia.

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Macchiarilli pointed out that 4 European countries depend more than others on Russian coal imports, led by Germany, Poland, the Netherlands and Italy, while the union buys its imports of Russian coal by about 4 billion euros annually.

The economist feared that the energy bills for European citizens would rise, in the absence of preventive measures, which would cause increased pressure on citizens’ incomes, in addition to the contribution of the growing demand from the EU countries to a significant increase in coal prices in global markets.

In Germany, the government introduced new energy-saving measures, including banning private swimming pools from being heated in the winter, making unused spaces in large office buildings unheated, as well as turning off lights at tourist attractions, and Cologne dimming after-hours street lighting. 11 p.m. Hanover lights out historic buildings and public fountains.

Berlin decided to reopen closed coal plants rather than shutting down the remaining plants by the end of the decade, as previously planned.

Leslie Balti, co-founder and CEO of consulting firm Gas Vista, told Foreign Policy that a return to coal is “inevitable” and will continue to be a “factor” of energy security.

Punishment for Europe

In turn, the CEO of the Corum Center for Strategic Studies in London, Tariq Al-Rifai, explained in exclusive statements to “Sky News Arabia” that the problem of banning Russian coal is the same as the problem of banning gas imports, as the European Union, especially countries such as Germany and Italy, mainly depend on Russian coal.

He said: “If this policy continues, where will alternative coal come from with the rise in prices, and this is a question mark, given that China is the world’s largest consumer of coal with about 60 percent of global production, then India and then European countries, and Russia is one of the largest producers of coal around the world. “.

Al-Rifai considered that all these policies come to try to punish Russia, but they will not succeed because the reaction will directly affect the European economy more than the Russian one, and the European citizen will bear this bill.

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