Russia is exporting Ukrainian coal to Turkey

Published September 19th, 2023 - 09:47 GMT
Russia is exporting Ukrainian coal to Turkey
A heap of coal rocks sites on the grounds of mining site near the city of Donetsk - Shutterstock

ALBAWABA – Russia is exporting Ukrainian coal to Turkey from the areas annexed in the Russian invasion of Ukraine, according to a Reuters published Tuesday.

At least $14.3 million worth of coal produced in areas of Ukraine annexed by Russia has been exported to the NATO member this year, official Russian customs data revealed.

Between February and July 2023, about 160,400 tonnes of coal from the annexed eastern Ukrainian regions of Donetsk and Luhansk arrived in Turkey, the data showed. 

Three producers listed in the customs data confirmed to Reuters they had shipped coal from the two regions to Turkey during that period.

Russia is exporting Ukrainian coal to Turkey

Customs data shows that Russia is exporting Ukrainian coal to Turkey - October 29, 2019

Data from a commercial trade data provider, reviewed by Reuters, showed that coal from at least 10 producers went to Turkey between February and July. 

Turkey was comfortably the biggest export destination of coal from the annexed regions, the figures showed, accounting for 95 percent of shipments during the period.

Turkey is a major coal consumer and importer, and the country is bucking the global trend by increasing reliance on coal in electricity generation. The country produced 31.5 million megawatt hours (MWh) of electricity from imported coal in the first half of 2023, up by a quarter from the same period of 2022, official data shows.

Reuters: Russia is exporting Ukrainian coal to Turkey with millions

Reuters reported that the sellers are registered in Russia and in annexed Ukrainian territories, as per the Interfax news agency's Spark database of Russian companies.

The buyers were companies registered in Hong Kong, the United Arab Emirates (UAE) and offshore jurisdictions including Belize and the British Virgin Islands, the customs data showed. There were no Turkish companies listed, according to Reuters.

In November, Vitaliy Khotsenko, the then-head of the so-called Donetsk People's Republic (DNR), said that the region was already exporting coal to Turkey. From there the coal went to markets in the Middle East and Africa.

Reuters was unable to find any information in customs data about deliveries of coal produced in the DNR to Turkey or other countries in 2022.

The commercial trade data does not give a complete picture of how the coal was exported. However, it showed that some went via the southern Russian port city of Rostov and some through the Black Sea port of Novorossiisk. Both of which have rail connections to Donetsk and Luhansk. Reuters was unable to determine whether some or all of it was re-exported from Turkey.

Vostokugol, based in Luhansk and owned by the Russian-installed LNR authorities, is one of the largest coal mining companies in the annexed territories. It accounted for 100,000 tonnes of the February-July volumes to Turkey, customs data showed.

Russia is exporting Ukrainian coal to Turkey

Wheel loader loading in the Kalinin mine in Gorlovka, Ukraine on February, 26, 2014 - Shutterstock

Customs records showed that two companies were the biggest buyers of coal from annexed Ukrainian territory in the said period.

From February to July, Brig Management LTD and Green Rabbit LTD shipped 49,000 tonnes and 11,800 tonnes of coal mined in the annexed territories of Ukraine to Turkey, worth $4.8 million and $1.1 million, according to the customs data.

Customs data shows Nedra-06 made two shipments of coal to Turkey totalling 1,600 tonnes in May and June. The buyers were Belize-based Brig Management LTD and Green Rabbit LTD of Hong Kong.

Unlike the United States (US) and European Union (EU), Turkey has not restricted trade with Russia or the areas of Ukraine controlled by Moscow. Even though Turkey has said repeatedly that it recognises Ukraine's territorial integrity.

Notably, Ankara played a key role in mediating a now-lapsed deal between the warring countries that allowed Ukrainian grain exports via the Black Sea, the Black Sea Grain Initiative.

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