MOSCOW (Pakistan Point News / Sputnik - 28th June, 2021) Russian exporters buoyed by coal price surge have decided to resume coal transit via North Korea, despite the need to coordinate the move with the United Nations and potential risks of sanctions, Russia's Kommersant newspaper reported on Monday.
According to the latest data provided by the Eurasian Economic Commission, Russia shipped 15,000 tonnes of coal worth some $836,700 to North Korea by rail in the first quarter of 2021, which marked the first such shipment since 2018. The cargo is set to be further exported to China or South Korea via the North Korean port of Rason.
The increase in coal demand in the region, among other things, is triggered by a shortage of natural gas, an increase in electricity consumption, as well as unfavorable weather conditions in China. The closure of mines in Colombia, floods in Indonesia and Australia, as well as a reduction in supplies to China due to the conflict with Canberra, have limited market supply.
Though the transit of Russian coal through Rason is not formally subject to sanctions, as the port is exempted from the UN sanctions list and the supply route has been coordinated with the relevant UN committee, Russian exporters fear that the United States could impose restrictive measures, accusing them of transporting North Korean coal, the newspaper reported.
