EU Coal Import Ban Comes Into Effect

The European Union's (EU) decision to ban coal imports from Russia came into force on Wednesday.

The European Council agreed to adopt the fifth package of restrictive measures against Russia on April 8 in a bid to increase economic pressure in response to its war with Ukraine.

The broad measures include an import ban on all forms of Russian coal.

"This affects one-fourth of all Russian coal exports, amounting to around €8 billion ($8.18 billion) loss of revenue per year for Russia," the Council said in April after the initial introduction of the package.

Russia supplied 25% of its coal exports to EU countries. The EU bought 45% of its total coal imports and 70% of thermal coal used for electricity generation from Russia.

The EU is expected to turn to other major suppliers i.e. the US, Australia, Colombia, or South Africa, for its coal needs now that it will no longer buy coal from its number one provider.

API2 Rotterdam Coal Futures, the benchmark for European coal prices, closed at $312.65 on Tuesday. Prices gradually increased from $192.35 on Feb. 24, the start of the Russian invasion of Ukraine.

Meanwhile, a ban on oil imports from Russia is expected to come into effect in December.

Contributions from Zeynep Beyza Kilic -