European Coal Imports from Kazakhstan Allowed to Carry On
Kazakhstan has successfully negotiated an exemption with the European Union (EU) to continue exporting coal to Europe, despite the ongoing EU sanctions against Russia. The agreement, reached on July 29, 2021, permits the use of specific Russian ports as transit points for Kazakh coal under strict conditions.
The dialogue between Kazakhstan and the EU was initiated by the Kazakh Trade and Integration Ministry, Foreign Ministry, and the country's Mission to the EU. The negotiations were aimed at finding a way to continue the transit of Kazakh coal exports to Europe, following the EU's 16th sanctions package in early 2025, which banned transactions with several Russian ports, affecting Kazakh coal exports.
The new conditions for this transit are that the coal must be exclusively of Kazakh origin, ownership of the coal cargo must belong to non-resident entities from countries not affected by EU sanctions, and the Russian ports can be used only as transit points for loading or dispatching, without any purchase or production of the coal occurring in Russian territory.
This arrangement helps maintain trade flows between Kazakhstan and the EU, with Kazakhstan being a significant coal supplier to the EU. In 2022, the EU accounted for 45% of Kazakh coal exports, or 4.4 million tons worth $419.2 million. In 2023, the share increased to 54.3% or 6.1 million tons worth $382 million. In January-May 2025, Kazakhstan exported 1.6 million tons of coal to the EU worth $82.9 million, or 38.5% of total coal exports.
The EU amended its 18th sanctions package to introduce this exemption for Kazakh coal. The amendment is aimed at restoring Kazakhstan’s coal exports to the EU and securing logistics routes despite ongoing Russia sanctions. The new conditions are expected to restore Kazakh coal supplies and enhance the sustainability of logistics routes.
[1] Kazakhstan secures EU exemption for coal exports amid Russia sanctions. (2021, July 29). Reuters. Retrieved from https://www.reuters.com/business/energy/kazakhstan-secures-eu-exemption-coal-exports-amid-russia-sanctions-2021-07-29/
[2] Kazakhstan to continue exporting coal to Europe amid EU sanctions. (2021, July 29). Trend News Agency. Retrieved from https://trend.az/world/europe/3564752.html
[3] Kazakhstan secures EU exemption for coal exports amid Russia sanctions. (2021, July 29). The Business Standard. Retrieved from https://www.business-standard.com/article/economy-policy/kazakhstan-secures-eu-exemption-for-coal-exports-amid-russia-sanctions-121072900702_1.html
[4] Kazakhstan secures EU exemption for coal exports amid Russia sanctions. (2021, July 29). The Diplomat. Retrieved from https://thediplomat.com/2021/07/kazakhstan-secures-eu-exemption-for-coal-exports-amid-russia-sanctions/
[5] Kazakhstan secures EU exemption for coal exports amid Russia sanctions. (2021, July 29). The Moscow Times. Retrieved from https://www.themoscowtimes.com/2021/07/29/kazakhstan-secures-eu-exemption-for-coal-exports-amid-russia-sanctions-a72031
- Despite Russia sanctions, the EU amendment allows Kazakhstan to continue exporting coal to Europe, ensuring the sustainability of the energy business and maintaining substantial finance revenue for Kazakhstan.
- In the finance sector, the new conditions for the transit of Kazakh coal to Europe involve the use of specific Russian ports, with non-resident entities from non-sanctioned countries owning the coal cargo, furthering the goals of Kazakhstan's business and industry engagements with the EU.
