Ukraine imposes 65% duty on Russian coal and power imports
Topics: UKRAINE DUTY RUSSIA COAL POWER IMPORT
The duty won’t be applied to coking coal and anthracite steam coal, for which there is a deficit in Ukraine.
Alexander Paraschiy: "The benchmark prices for steam coal in Europe are below USD 50/t now, while the domestic price of coal is close to USD 80/t, which makes Ukraine a potentially lucrative market for Russian coal suppliers.
"But even Ukraine's high price does not cover the production costs of state controlled coal mines.
"The new duty enables supporting domestic coal prices at their current high levels and minimizing the state’s costs related to supporting inefficient coal mines.
"But the key beneficiary of this decision will be DTEK Energy (DTEKUA), which produces almost 90% of steam coal in Ukraine." ■