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Russia continues to block supplies of thermal coal from Kazakhstan for Centrenergo – Energy Minister

KYIV. Jan 5 (Interfax-Ukraine) – The Russian Federation continues to block the supply of thermal coal contracted by PJSC Centrenergo through its territory, it is not possible to resolve the issue, Energy Minister Herman Haluschenko has said.

"No, coal does not come from Kazakhstan. There is a contract signed by PJSC Centrenergo for 660 million tonnes of coal for the autumn-winter period, but due to the corresponding actions by the Russian Federation, transit is being blocked on the Russian territory. Both we and Centrenergo do not see any other way to physically obtain this coal," the minister said at a briefing in Kyiv on Wednesday.

At the same time, he said that coal goes to Ukraine by sea "according to a clear schedule, is steadily, there is an accumulation in ports."

"The volume of imported coal entering Ukraine by sea for the heating season will be at the level of 1.6-1.8 million tonnes, possibly even more," Haluschenko said.

He also drew attention to a significant decrease in a cost of the imported resource: "If during the period of high prices its cost reached $300/tonne, now we are talking about $140/tonne."

In total, in November-December 2021, six Panamax vessels contracted by DTEK Energy arrived in Ukraine, one of which was for Centrenergo, plus three more vessels arrived directly under the Centrenergo contracts.

The company calculated that at the end of 2021, they received about 300,000 tonnes of thermal coal by sea. In January 2022, two more ships with coal from Australia are scheduled to arrive with a total volume of about 150,000 tonnes. Approximate dates of call at the port are January 15-17 and January 28-29.

DTEK Energy reported on Wednesday that they are preparing to receive three more Panamax vessels in January.