No one wanted to insure it: Russian coal has a new problem

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No one wanted to insure it: Russian coal has a new problem
No one wanted to insure it: Russian coal has a new problem
18 August, 10:46Photo: Соцсети
European insurance companies are prohibited from working with Russian coal companies, which jeopardizes the transportation of this fuel.

Russian coal companies have a new problem: the European embargo on the supply of coal turned into not only a ban on the purchase of fuel, but also a ban on the provision of insurance and other financial services for the transportation of coal, regardless of destination. European traders, insurers and logisticians can no longer have anything to do with the supply of Russian coal, - the Kremlyovsky Mamkoved channel reports. The European Commission issued the corresponding explanation only on August 10, after the entry into force of new restrictions. Finding alternative insurers is not a trivial task. In fact, the European market released 50 million tons of coal per year. Organizations that are part of the International Group of P&I Clubs (IG) insure about 90% of shipping.

Russian railways are working to the limit

And even if the insurance itself is not registered in the EU, then it is almost certainly tied to European reinsurers. And the only export option is sending trains to the east. But BAM and Transsib are already working at their limit - there is no longer a reserve of bandwidth. The most ambitious plans for the expansion of the BAM and the Trans-Siberian last year provided for an increase in the throughput capacity of the highways by 60 million tons of cargo per year. This includes the transportation of coal, and the transportation of other goods from the Far East and back. The expansion should take place before 2030 and require 2.89 trillion. But so far, even the first stage of the expansion of the BAM is delayed by at least 5 years.

Abramovich will suffer the most

In addition, the financing of the project is a big question. A-Property refused to use the new capacity of BAM due to the too high cost of transporting goods and is building its own non-public railway from the Elga deposit to Chumikan on the Sea of Okhotsk to transport 16.6 million tons of coal. The Kemerovo region, which is experiencing a shortage of transport routes, will suffer the most from Western sanctions. EVRAZ of Roman Abramovich, UMMC of Iskander Makhmudov and Andrey Bokarev, and SUEK of Andrey Melnichenko will suffer the most damage. From the enterprise are the largest coal miners in the region. But worse than that, logistical problems can lead to the closure of individual mines and a reduction in staff. When and in what form the BAM and the Trans-Siberian Railway will be expanded - there is no such understanding now even in Russian Railways.

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