The EU’s coal ban on Russia has also come into effect, following an agreement among EU countries to cut natural gas usage.

But whether it is coal or natural gas, European countries are not self-sufficient.

The entry into force of the "coal ban" may make the already fragile energy market in the European continent worse.

End of "transition period"

　　On April 8 this year, representatives of the 27 EU member states decided to impose a fifth round of sanctions on Russia, including an embargo on Russian coal.

The ban will take effect after the 120-day "transition period" ends, which is around August 10.

　　According to CCTV news, at midnight on August 10, the 120-day "transition period" set by the EU to ban the import of Russian coal expired, and the EU's embargo on Russian coal officially came into effect.

　　European Commission spokesman Eric Mamet said the period for EU coal imports to Russia came to an end when the ban on Russian coal came into effect, and there would be no further exemptions.

According to the EU, the ban, which targets all forms of Russian coal products, will affect a quarter of Russia's coal exports, resulting in a total loss of about 8 billion euros in revenue.

　　The coal ban is part of a series of EU sanctions on Russia.

Since the Ukrainian crisis, sanctions against Russia by European and American countries have continued to escalate, affecting Russia's trade, finance, energy and other fields.

However, since many EU countries rely heavily on Russian energy, the ban on Russian energy has caused a lot of controversy within the EU.

　　It is understood that Europe mainly imports two types of coal from Russia: thermal coal for combustion in power plants and metallurgical coal for steelmaking.

According to Eurostat data, among EU countries, Germany, Poland, Italy and the Netherlands are the most dependent on Russian coal imports, and these countries' coal imports from Russia account for more than 65% of their total imports.

　　Meanwhile, Russia is the third largest exporter of coal in the world.

According to data from the General Administration of Customs of the Russian Federation, Russia's total coal exports in 2021 will be 223 million tons, with thermal coal exports accounting for about 17% of the world's total trade, and coking coal exports accounting for about 9% of the world's total.

　　To address the gap, the EU has begun to study alternative energy sources for coal.

The EU has imported 15.8 million tonnes of marine thermal coal from countries other than Russia since early March, up 45% from the same period in 2019, with the biggest increases coming from South Africa and Australia, data from commodities tracker Kpler showed.

　　However, some analysts pointed out that most of the coal exported from Russia to Europe is produced in the most western coal fields of Russia, which has a great advantage in transportation distance.

　　UBS analyst Miles Allsop said there was a big question mark over whether Europe could find enough energy to replace Russian coal imports.

In addition, filling energy gaps such as natural gas with coal is inherently challenging.

Energy woes intensify

　　The ban on Russian coal is another challenge for Europe, which is mired in energy shortages.

The threat of energy shortages has been looming over European countries since last winter, and the recent extreme heat wave in Europe has pushed up the demand for electricity consumption, and the demand for electricity generation and consumption has surged in various countries.

　　The latest report released by the International Energy Agency shows that in 2022, global coal consumption will return to the record level of nearly 10 years ago.

The outlook for coal is subject to significant uncertainty due to slowing economic growth and volatile energy markets.

The agency predicted in July that in 2022, EU coal consumption will increase by 7% on the basis of last year's 14% increase, and global coal consumption will increase by 0.7% year-on-year to 8 billion tons, and global coal demand will further increase in 2023. .

　　In addition, because Russia has cut its natural gas supply to Europe sharply in recent months, European countries that have been vigorously developing new energy sources are increasingly relying on coal.

Germany, Austria, Greece, the Netherlands and other European countries have recently announced that they will reopen coal power plants or take measures to support coal power to alleviate the shortage of natural gas.

　　European coal prices have hit record highs as supply and demand tighten.

European thermal coal prices rose to around $400 a tonne in mid-July, well above $130 a year ago, according to a price assessment by UK-based energy consultancy Argus.

　　In order to make up for the coal supply gap, European countries have hoarded coal.

The British "Financial Times" reported that European countries have recently continued to import coal from Russia, and some countries even hope that Russia will deliver all the coal agreed in the contract in advance, in order to store enough before the ban takes effect.

　　But many analysts also worry that it is very difficult for European countries to survive the energy crisis by hoarding coal.

Goldman Sachs senior energy strategist Samantha Dart said that while coal supplies were plentiful in the summer, a longer-term reliance on burning coal to replace natural gas meant Europe would have to restock sooner or later, and by then, European countries had already been restocked due to import bans. Unable to import coal from Russia.

European economy under pressure

　　Since the outbreak of the Russian-Ukrainian conflict, the EU has imposed multiple rounds of sanctions on Russia, especially since it was extended to the energy sector, the EU's own economy has also suffered heavy losses, including increased inflation, supply chain disruptions, and significantly increased uncertainty about the economic outlook.

　　European Commission Executive Vice President Dombrovskis said that while the economy will continue to grow this year and next, it will be much slower than previously expected.

As long as the Russian-Ukrainian conflict persists, the outlook is uncertain and risky.

　　Earlier, Germany, as the "hardest hit area" of the European energy crisis, has announced the resumption of coal power generation.

However, due to the high temperature, the logistics chain of coal originally transported through the Rhine is now hindered.

Due to the drop in water levels caused by the continuous high temperature, some key sections of the Rhine are expected to be unnavigable from August 12.

　　German officials said that the water level of the Rhine River has dropped to a dangerously low point, and shipping on the river may stop for a few days.

　　The Rhine, which has long been the backbone of the German, Dutch and Swiss economies, has now dried up to critical water levels, making it nearly impassable for ships and hindering the flow of bulk cargoes such as diesel and coal.

In addition, the Danube has also dropped water levels due to high temperatures, hindering grain and other trade, and half of Ukraine's agricultural products are exported through Danube ports.

　　Right now, European countries have to "tighten their belts" when it comes to energy use.

EU member states reached a political agreement on July 26 to take voluntary measures to reduce natural gas demand this winter by 15% to improve the security of the bloc's energy supply.

　　Bai Wenxi, chief economist of IPG China, said that the main reason for the lack of energy in the EU is that the previous too radical environmental protection transformation plans and policies have led to the rapid replacement of fossil energy in the EU's energy structure and the replacement of natural gas and new energy. The over-dependence of China has led to the energy shortage and energy dilemma under the conflict between Russia and Ukraine.

　　Beijing Business Daily reporter Tao Feng Zhao Tianshu