On April 8, 2022, the European Union announced that it would ban all coal imports from Russia starting in August this year. While the total value of these imports is relatively small, this will have large implications for both European and global coal balances.
Russian coal is generally of high quality and the coal that would be freed up and shipped to Europe is of low quality (low CV), which is a problem for European power plants. What makes matters more complicated is that Japan is working on replacing their Russian coal imports too. The likely effect is a tightening of high-quality coal balances worldwide.
A ban on imports of Russian gas is currently viewed as the most difficult to deal with for European economies. Over the past 5 years, Russian gas imports accounted for about 38% of European gas consumption.
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