US Coal Exports
Exports Economic Contributions Report
Jul 31 2017

Ukraine Coal Exports Part of Trump Bid to Counter Russia (Washington Post)

Posted in All News, Europe

Ukraine Coal Exports Part of Trump Bid to Counter Russia (1)

A Pennsylvania company will send 700,000 tons of coal to Ukraine in a deal the administration of President Donald Trump heralded as an important tool to undercut the power Russia has over its European neighbors.

While Trump has pledged to improve ties with Russian President Vladimir Putin, his administration says it’s trying to use more U.S. exports of coal, natural gas and oil to curtail Putin’s sway with Russian natural resources. Ukraine had been reliant on Russia for much of its oil and gas, and its domestic thermal coal supply collapsed because much comes from the rebel-controlled eastern part of the nation.

“In recent years, Kiev and much of Eastern Europe have been reliant on and beholden to Russia to keep the heat on,” Energy Secretary Rick Perry said in a statement announcing the coal-export deal. “That changes now. The United States can offer Ukraine an alternative, and today we are pleased to announce that we will.”

At a ceremony in Kiev Monday, Pennsylvania-based Xcoal Energy & Resources LLC announced an agreement with Ukraine power generator Centrenergo PJSC to supply the 700,000 tons for this winter season. Ukraine’s initial purchase for 210,000 tons will be at a price of $113 a ton, Oleh Kozemko, acting chief executive officer of Centrenergo, told reporters during a press conference in Kiev.

Regrettable Act

“They don’t want to rely on the Russians, so they are required to import it from somebody,” said Barry Worthington, executive director of the independent United States Energy Association.

The U.S. and Russia have had an up-and-down relationship since Trump took office. The U.S. intelligence community determined that Putin intervened in the 2016 presidential election to help Trump win, and Trump had pledged both during and after the campaign to improve ties with Russia. But, in recent days Congress passed new sanctions against Russia and Putin demanded the U.S. cut its embassy and consulate staff by 755. The U.S. State Department called Putin’s move “a regrettable and uncalled-for act.”

Trump has said U.S. oil, coal and natural gas exports are a potent diplomatic weapon.

“Russia makes its money through selling of oil, and we’ve got underneath us more oil than anybody, and nobody knew it until five years ago,” he told reporters earlier this month. “And I want to use it.”

The announcement also fits into Trump’s vow to save the U.S. coal-mining jobs.

The contract represents the first time U.S. origin thermal coal has been supplied to a customer in Ukraine, Latrobe, Pennsylvania-based Xcoal said in a statement. The deal will create and sustain hundreds of jobs for Pennsylvania coal miners, it said.

“The U.S. coal will replace Russian origin coal at existing thermal power plants, i.e. energy security and diversification,” Ernie Thrasher, Xcoal’s chief executive officer said by email.

The U.S. exported more than 60 million short tons of coal worldwide last year.

See article here.

  • “The fact that we’re no longer in the age of energy scarcity – that we’re in the age of energy abundance – positions the United States in a totally different place. This gives access to affordable, reliable energy in the United States, and gives the U.S. a major competitive advantage.”
    – Dave Banks, Special Assistant to President Donald Trump for International Energy, June 2017
  • “It is in the national interest to promote clean and safe development of our Nation's vast energy resources, while at the same time avoiding regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Moreover, the prudent development of these natural resources is essential to ensuring the Nation's geopolitical security.”
    – Executive Order on Promoting Energy Independence and Economic Growth, March 28, 2017
  • “Historically, U.S. companies seeking to expand their revenues focused first on increasing their number and share of U.S customers. For years, this focus served as a winning strategy for many of the most successful U.S. companies. Today, global economic trends make clear that successful companies are those that reach and sell to consumers outside U.S. borders and around the globe.”
    — 2011 National Export Strategy, U.S. Trade Promotion Coordinating Committee
  • “Federal regulatory agencies should not require climate change studies in the course of their permitting processes for proposed facilities. Coal will be consumed around the world regardless of U.S. trade policy. The only question is whether the coal is produced here in North America, where environmental standards are high, or elsewhere.”
    — U.S. Senator Lisa Murkowski, January 7, 2014
  • “At present 19% of the world’s population, 1.3 billion people, lack access to electricity and on New Policy Scenario projections there will still be 1 billion people without such access in 2030. To meet the UN Millennium Development Goal of eradicating extreme poverty by 2015, 395 million more people need access to electricity. There is a strong correlation between electrification and improvement in the United Nations’ Human Development Index.”
    — International Energy Agency, Coal Industry Advisory Board
  • “Access to electricity is strongly correlated with every measurable indicator of human development”
    — Berkeley Science Review, 2008

Count on Coal

National Mining Association

Twitter Logo

facebook Logo