European Coal Jumps as EU Eyes Sanctions on Russian Imports

(Bloomberg) -- European coal futures rose to a three-week high as the European Union plans to propose a phaseout of Russian coal imports in response to the country’s suspected war crimes in Ukraine. 

The action on coal would be added to a package of steps aimed at strengthening existing measures set to be debated this week by EU ambassadors, according to people familiar with the matter. The details of the ban and the timing of the coal phaseout are still under discussion, they said.

EU to Propose Banning Coal Imports From Russia After Atrocities

Russia supplies about half of the continent’s thermal coal, used to fuel its power stations and generate electricity. So far, its energy exports haven’t been subject to direct EU sanctions and it’s unclear whether all the bloc’s members are willing to extend them.

Year-ahead futures for coal delivered to northwest Europe jumped as much as 7.9% to $205 a ton on ICE Futures Europe. The global coal trade has been tightened as traders look to buy from sources outside of Russia. U.S. coal prices also surged above $100 a ton for the first time since 2008. 

France is ready to extend sanctions against Russia to the oil and coal sectors, Bruno Le Maire told reporters before a meeting of European Union finance ministers, while European Commission Vice President Valdis Dombrovskis said such measures were an option for the bloc. 

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