EU ambassadors on Thursday are expected to approve a ban on Russian coal imports that will take effect in mid-August, a month later than originally anticipated, following pressure from Germany to postpone the measure, Reuters wrote, citing an EU source.
The phase-out of EU imports of Russian coal is the cornerstone of the fifth package of sanctions against Russia, which the European Commission proposed this week in response to atrocities in the Ukrainian town of Bucha, the agency noted.
Once approved, it would be the EU's first ban on energy imports from Russia since the start of Russia's full-scale invasion of Ukraine on Feb. 24.
Oil and gas, which are much larger imports from Russia, remain untouched as before, the publication writes.
Most of Europe buys Russian coal on the spot market rather than under long-term contracts. These spot purchases will cease immediately after the imposition of sanctions.
According to the document, seen by Reuters, the European Commission initially proposed a three-month termination period for existing contracts, meaning that Russia could still export coal to the EU for 90 days after the sanctions were imposed.
But that period was extended to four months, a source familiar with the discussions told Reuters on condition of anonymity.
This was mainly due to pressure from Germany, the main importer of Russian coal to the EU, the agency notes.
Because the sanctions are expected to take effect at the end of this week or early next week after publication in the EU Official Journal, Russian companies will actually be able to export coal to the EU until mid-August under existing contracts.
One diplomat said that most of the coal contracts were short-term, and the 90-day closure period would allow most of them to be closed without the need for cancellation, avoiding legal risks.
Although the initial proposal is somewhat watered down, the EU's planned ban on Russian coal is more ambitious than that of Britain, which has said it plans to ban coal imports from Russia by the end of the year.
The European Commission has estimated that the coal ban could cost Russia 4 billion euros ($4.36 billion) a year in lost revenues.
