SEOUL (Pakistan Point News / Sputnik - 29th April, 2022) South Korea is increasing coal imports from Australia to reduce dependence on Russian coal, which is rising in price amid the crisis in Ukraine, South Korean Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki said at a government meeting on Thursday.
South Korea has decided to diversify its coal import channels and increase cement production amid volatile bituminous coal supplies due to the conflict in Ukraine, while domestic demand for the fuel is growing.
According to Hong, South Korea will continue to push for more imports of bituminous coal from Australia to reduce dependence on Russia.
"Recently, due to the Ukrainian crisis and other reasons, the price of bituminous coal has drastically doubled from the beginning of the year, causing the price of cement and other key building materials to rise and supply instability," Hong Nam-ki said.
In response, the government has decided to diversify its coal procurement chain, including increasing the share of Australian coal in imports by one and a half times, while speeding up the corresponding customs clearance process.
According to the South Korean media, in the first quarter of 2022, Russian coal accounted for about 62% of South Korea's total coal imports, while coal from Australia accounted for 38%, compared to 75% of Russian coal and 25% of Australian one year earlier.
On February 24, Russia launched a special military operation in Ukraine after the breakaway republics of Donetsk and Luhansk requested help to defend them from intensifying attacks by Ukrainian troops. Western countries and their allies, including South Korea, responded by imposing comprehensive sanctions against Russia and vowed to reduce dependency on Russian energy. On April 8, the European Union announced the fifth package of anti-Russia sanctions that included a ban on imports of coal and other solid fossil fuels.
