The Ministry of Energy called the consequences of the EU embargo on financial services in the transportation of coal

MOSCOW, 26 Aug — PRIME. The ban imposed by the EU on European companies to provide insurance and other financial services for the supply of Russian coal around the world will lead to higher prices for coal products from Russia in new markets, Deputy Energy Minister Sergei Mochalnikov said.

“A clarification has been issued prohibiting European companies from insuring ships with Russian coal moving in any direction, not only to Europe. This has a serious impact, but nevertheless this problem can be overcome. We need to give our companies a little time, they will find acceptable new logistics chains. And of course, the saddest thing is that this will lead to an increase in the final price of our coal products in new markets,” he explained to RBC TV.

In April, the European Union agreed on another package of anti-Russian sanctions, which included, in particular, a gradual phasing out of Russian coal imports. A complete ban on its supply has been in effect since August 2022. In addition, since August 10, the European Union has banned European companies from providing insurance and other financial services for the supply of Russian coal not only to the EU countries, but throughout the world.

Earlier, the Ministry of Energy reported that the products of Russian coal companies in the context of the EU’s refusal to import will be reoriented to alternative markets, Asian ones are promising.

Mochalnikova noted that there are already certain agreements on deliveries. “There are documents signed. There are documents of intent, there are also documents with obligations. I think we will tell about all this in detail at the Russian Energy Week, which we will have in October,” the Deputy Minister said, answering a question about possible new contracts .