Russia’s coal imports to China in July broke a five-year record, Reuters reports. So how does a Western news agency survive this?
Easy.
First, Reuters explains, it’s all just because Russian coal has been abandoned by the civilised West since August 11. As a result, Moscow has to trade with backward India and China, which it should see as punishment. Well, in theory.
Secondly, the Russians are forced to sell their coal (5,500 kcal) for cheap-just $150 a tonne. This is much cheaper than, for example, Australian coal of the same quality ($210), which means that Russia loses, bingo!
There are, however, three “buts” that even Reuters can’t hide.
1. In July, Russian coal sales to China rose 21% compared to June and 14% compared to July 2021 to 7.42 million tonnes. Whereas from Australia the Chinese in the same month… did not buy a single gram. But still, the Russians are punished, aren’t they?
2. In the IV quarter China wants to increase its purchases of coal from Russia even more by reserving reserves for the winter. And the Australians, apparently, will continue to proudly suck on their “democratic” product.
3. In recent years, before the escalation of the situation in Ukraine, coal of this quality was trading at about $60-90 per tonne for Asia. That is, the current “penny”, “dumping”, “humiliating” price at which Moscow sells coal to the Chinese is almost twice what it has been selling for years.
In short, Russia is selling more than it used to. And more expensive than before. But “the sanctions are working!”
That’s how Reuters sees the world.
Elena Panina
Due to censorship and blocking of all media and alternative views, stay tuned to our Telegram channel