Business news from Ukraine


Ukraine’s thermal power plants (TPP) and combined heat and power plants (CHPP) in January-May 2019 reduced coal consumption by 4.4% (or 498,400 tonnes) compared to the same period in 2018, to 10.71 million tonnes.
According to the Ministry of Energy and Coal Industry, in May 2019, coal consumption at TPPs and CHPPs increased by 1% (or 18,100 tonnes) compared to the same month of 2018, to 1.835 million tonnes.
As reported, consumption of steam coal by TPPs and CHPPs in the country in 2018 increased by 5.7% (1.409 million tonnes) compared with 2017, to 26.22 million tonnes.
The use of gas coal rose by 11.1% (2.74 million tonnes), to 20.813 million tonnes, while that of anthracite decreased by 11% (665,600 tonnes), to 5.408 million tonnes.
The share of anthracite consumption in the total amount of coal consumed by thermal generation plants in 2018 was 20.6% against 24.5% in 2017 and 40.9% in 2016, the figures for gas coal stood at 79.4%, 75.5% and 59.1% respectively.



DTEK Group in January-March 2019 reduced coal imports by 24.1% (224,700 tonnes) compared to the same period last year, to 707,700 tonnes, according to a press release from the company.
In the first quarter, DTEK enterprises increased production of coal by 1.3% compared to the same period of 2018, to 6.476 million tonnes.
In particular, the production of G and DG grade coal (Ukraine) in January-March 2019 increased by 0.4%, to 5.782 million tonnes. Production of A grade coal by Obukhovskaya mine (the Russian Federation) for this period increased by 9.9%, to 694,600 tonnes.
Concentrate output rose by 1.4%, to 2.843 million tonnes. In particular, output at third-party processing plants in Ukraine decreased by 74.7%, to 58,000 tonnes, while at Obukhovskaya mine rose by 33.2%, to 472,900 tonnes.

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Coal mining enterprises in Ukraine in January-March 2019 reduced run-of-mine (ROM) coal production by 7.1% (by 594,500 tonnes) compared to the same period in 2018, to 7.765 million tonnes.
According to the Ministry of Energy and Coal Industry, extraction of coking coal during the reporting period decreased by 24% (by 387,400 tonnes), to 1.227 million tonnes, and steam coal fell by 3.1% (by 207,100 tonnes), to 6.537 million tonnes.
Krasnolymanske LLC, under control of Vitaliy Kropachev, continued hiding information about its operations from the ministry started in September 2018.
The ministry said that in March 2019, ROM coal production fell by 11.9% (360,400 tonnes) compared with March 2018, to 2,664 million tonnes.
Coal mining enterprises managed by the Ministry of Energy and Coal Industry reduced coal production by 19.5% (by 230,900 tonnes), to 955,500 tonnes, in particular extraction of coking coal grew by 10.1%, to 165,800 tonnes, while steam coal production fell by 23.8%, to 789,700 tonnes.
Mines in Donetsk region produced 2.524 million tonnes of coal (14% less compared with January-March 2018), Luhansk region some 111,700 tonnes (23.7% less), Dnipropetrovsk region some 4.74 million tonnes (2% less), Lviv region some 374,300 tonnes (8.6% less), and Volyn region some 14,300 tonnes (52.2% less).



Ukraine in 2018 increased imports of coal and anthracite by 8.1% (by 1.610 million tonnes) compared to 2017, to 21.388 million tonnes. According to the State Fiscal Service, coal was imported for $3.035 billion, which is 10.6% more than in 2017.
At the same time, coal imports from the Russian Federation amounted to $1.822 billion (its share in imports was 60.02%), the United States to $907.173 million (29.89%), Canada to $162.546 million (5.36%), other countries to $143.937 million (4.74%). In addition, Ukraine last year exported 63,798 tonnes of coal and anthracite for $8.649 million, in particular to the Russian Federation for $4.597 million, Slovakia for $3.201 million, Moldova for $724,000, and other countries for $127,000.



Coal mining enterprises of Ukraine in January-October 2018 reduced extraction of coal by 4.1% (by 1.189 million tonnes) compared to the same period in 2017, to 27.688 million tonnes.
The Ministry of Energy and Coal Industry told Interfax-Ukraine production of coking coal decreased by 11.7% (by 652,500 tonnes), to 4.908 million tonnes, steam coal by 2.3% % (536,800 tonnes), to 22.779 million tonnes.
In October 2018, production of run-of-mine (ROM) coal grew by 5% compared to the same month in 2017, to 2.839 million tonnes.
Coal mining companies managed by the ministry for the ten months ending October 2018 reduced production by 13.3%, to 3.454 million tonnes, in particular production of coking coal was down by 42.8%, to 436,000 tonnes, steam coal decreased by 6.3%, to 3.018 million tonnes.
The mines of Donetsk region for the ten months of this year provided production of 9.253 million tonnes of coal (2.6% less compared to January-October 2017), Luhansk region some 427,300 tonnes (down by 73.3%), Dnipropetrovsk region some 16.594 million tonnes (1.1% more), Lviv region some 1.324 million tonnes (3.8% up), and Volyn region some 89,400 tonnes (1.9% up).



Ukraine increased imports of coal and anthracite coal (HS code 2701) by 9.9%, or 1.719 million tonnes, in January-November 2018 year-over-year, to 19.095 million tonnes. Coal shipments over the period under review were estimated at $2.693 billion, which was 10.8% more than in January-November 2017 ($2.431 billion), Ukraine’s State Fiscal Service said.
In particular, coal bought from the Russian Federation (61.91% of all imports) was estimated at $1.667 billion, from the United States (29.94%) at $806.349 million, Canada (4.78%) at $128.608 million, and other countries (3.37%) at $90.865 million.
In addition, Ukraine in January-November 2018 exported 63,617 tonnes of coal and anthracite to the tune of $8.627 million, including to Russia ($4.597 million), Slovakia ($3.201 million), Moldova ($0.715 million), and other countries ($0.114 million).
As reported, Ukraine plans in 2018 to increase import of steam coal by 11.3% compared to 2017, to 5.669 million tonnes.
In particular, it plans to buy 4.882 million tonnes of coal from Russia (a rise of 29.6% from 2017), 664,000 tonnes from the United States (a rise of 47.7%), and 123,000 tonnes from South Africa (a fall of 83.8%).
In 2011, Ukraine’s coal and anthracite imports totaled $2.761 billion and exports $775.109 million, in 2012: $2.637 billion and $609.392 million, respectively. These indicators in 2013 were $1.974 billion and $737.009 million, respectively, in 2014: $1.773 billion and $521.017 million, in 2015: $1.632 billion and $53.651 million, in 2016: $1.467 billion and $44.762 million, and in 2017: $2.744 billion and $105.494 million, respectively.

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