According to the European Commission website, the EU relies on Russia for around 45% of its coal imports, 45% of its gas imports and approximately 24% of its oil imports. The proposed restrictions in Europe leave uncertainty about tight gas supplies and coal. The economic impacts are evident; although alternatives to Russian coal and gas exist, they will require an increase in the price. The world’s top coal exports, Australia, and Indonesia, have hit their production limits and are unlikely to meet EU demands. Alex Stuart-Grumbar, a dry bulk analyst, stated that the need to import more coal would be positive for the larger Panamax and Capesize shipping segments on longer trade routes. Stuart-Grumbar commented: “The initial disruption to trade patterns will be positive for dry bulk markets, though ultimately, this will push global coal prices higher, incentivizing China and India to produce more coal domestically.”
