The first shipment of U.S. anthracite coal to Ukraine is now heading from the U.S. port Baltimore, with a ceremony to mark the launch of the trade broadcast live on Facebook by the Embassy of Ukraine in the United States on Aug. 21.
Pennsylvania-based XCoal Energy and Resources signed a contract with Ukrainian state energy company Centerenergo on July 31, guaranteeing the provision of 700,000 tons of anthracite coal in the next few months. The deal followed talks by Ukrainian President Petro Poroshenko’s with U.S. President Donald J. Trump’s administration in June.
The first shipment of 62,000 tons, which cost $113 per metric ton, is expected to arrive in Odesa’s Yuzhnyy port in three weeks, Voice of America reported.
Ukraine ambassador to the United States, Valeriy Chaly, speaking at the ceremony, emphasized the importance of this partnership for Ukraine’s energy security. Since the war with Russia broke out in 2014, Ukraine has sought alternative suppliers of coal for electricity generation.
Most of Ukraine’s anthracite coal, which is the only fuel that can be used by several of its power stations, used to come from parts of the Donbas that are now occupied by Russia.
Ukraine cut off deliveries of coal from the Russian-controlled territories in March, and has been struggling to meet its energy needs since then.
“We appreciate our American friends’ support. I’m proud that in the time of war our nations create jobs, create opportunities,” Ambassador Chaly said.
However, XCoal spokesman Ted O’Brien said that his company didn’t view the agreement with Ukrainian government as a political deal.
“For us, this is (just) a client who needs coal,” he said, quoted by Voice of America.
Exports to Ukraine are part of Trump’s broader energy policies, as he promised to revive the U.S. energy sector by boosting exports of coal and liquefied natural gas (LNG) abroad, and create jobs for U.S. coal miners.
While Russia is building its Nord Stream II pipeline across the Baltic Sea to Germany, bypassing Ukrainian pipelines, the United States has said it will increase its exports of LNG to Europe.
This week Lithuania is to receive a first tanker with a delivery of LNG from the United States.
