EU to delay coal ban amid pressure from Germany
The European Union (EU) will ban Russian coal a month later than planned amid pressure from Germany to delay the restrictions, according to news agency Reuters.
The measure is expected to be approved later today by the trading bloc, with the phase out of Russian coal a cornerstone in the fifth package of Western sanctions against the Kremlin.
The EU Commission proposed the measure earlier week, following the execution of civilians by Russian forces in the Ukrainian town of Bucha.
Once approved, it will be the first EU-wide restrictions on Russian energy imports – although Lithuania unilaterally banned Russian gas earlier this month
The UK will phase out coal imports from Russia by the end of the year, following last month’s pledge to stop purchasing Kremlin-backed oil supplies.
The US has already ditched all Russian fossil fuels.
Initially, the EU Commission had proposed a wind-down period of three months for existing contracts, meaning Russia would be able effectively still export coal to the EU for 90 days after sanctions were imposed, according to a document seen by Reuters.
However, the news agency understands the period has been extended to four months after Germany raised objections.
As most coal contracts are short term, the 90-day grace period will allow most deals to be concluded without the need for cancellation, avoiding legal risks.
The EU remains split over the prospect of oil and gas sanctions – with the bloc reliant on Russia for 33 per cent of its crude imports and 40 per cent of its natural gas supplies.
Germany and Austria are particularly dependent on Russian gas and have triggered emergency measures following Russian President Vladimir Putin’s demand for rouble payments.
The EU Commission has estimated the coal ban could cost Russia €4bn billion a year in lost revenue.
Divisions over sanctions come amid reports of record power prices in Europe.
In France, prices reached record levels on the day-ahead market for Monday 4 April – with an average daily spot price of €551.
Between 8 and 9am, the price was €2988 per MWh – also a record.
According to Rystad Energy, the main reasons for this extraordinary price level were low nuclear availability and wind power output, alongside limited cross-border capacity from neighbouring countries, such as Belgium and Germany.
Final numbers for March confirmed it had the highest average spot prices ever.
Italy led the pack with €312 per MWh, followed by UK at €300 and France at €295, and Spain at €283.