EQNR - Russian energy flows - coal is the first casualty as exports deferred

As Russia's military forces congregated on the Ukrainian border, commodity strategists worked through the cost / benefit of Russia curtailing energy exports or the west sanctioning Russian energy supplies. It was generally assumed Russian energy flows would be unimpacted by conflict in Ukraine; however, that narrative may be shifting. According to a letter seen by Bloomberg, one of Russia's largest coal exporters has asked customers to defer cargoes for a quarter, on the back of staff shortages and railway challenges.  Russia's Kuzbassrazrezugol produces ~10% of the Country's coal volumes, but accounts for almost 20% of exports. The Company produced ~38mt of thermal coal in 2021, and 7mt of coking coal, exporting over 70% of its production. According to Argus, the seaborne thermal coal market is ~1btpa, Russia accounts for ~150mt, and Kuzbassrazrezugol accounts for ~30mt. Suggesting this deferral would reduce supply to the seaborne market by ~3%. The supply impact

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Russian energy flows - coal is the first casualty as exports deferred