Facing energy shortages, Ukraine will buy coal from the US, Australia, and South Africa.

March 21, 2017 15:42

(Baonghean.vn) - Ukrainian Prime Minister Vladimir Groisman said that the country is currently seriously planning to purchase coal from the United States, Australia, and South Africa using its foreign exchange reserves.

Ukraine's energy sector is in a serious crisis. Photo: Vesti

Due to the conflict in Donbass (long considered Ukraine's coal bowl), the country is currently facing a severe fuel shortage. Ukraine needs to import a total of 1 million tons of coal per month to meet domestic demand.

Prime Minister Groisman stated that Ukraine has gone more than 500 days without using "a single drop of gas" from Russia. "We have the capability to produce our own gas and are energy independent. We will produce 500 million tons ourselves, and the other half will be purchased from the United States, Australia, or South Africa," he emphasized.

Currently, the Ukrainian government is buying coal from South Africa at $86 per ton. However, by the time it arrives in Ukraine, the price has skyrocketed to $110 per ton (including shipping and other fees).

According to experts, Kyiv could compensate for the coal shortage by importing from Russia and other countries. However, Ukraine lacks funds, and the West seems unable to help the Kyiv government.

The question now is: "Where will Ukraine buy its coal?" The first option is Russia. The second is international markets, but shipping by sea would be more expensive than transporting it from Donbass or Russia. And if Ukraine decides to seek foreign partners for coal supply, they will likely be unwilling to cooperate with Kyiv due to financial complications.

It will be very difficult for Ukraine to resolve the energy crisis, while relations between Kyiv and Moscow, and Kyiv and Donbass, are already very strained.

Commenting on the blockade of coal supplies to Ukraine from Donbass, Prime Minister Groisman pointed out that those involved in the campaign believed it was good for the country. "But this action only brings negative consequences for both the people and the energy industry."

US Russia

(According to Ria Novosti)

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Facing energy shortages, Ukraine will buy coal from the US, Australia, and South Africa.
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