Kremlin spokesperson Dmitry Peskov said on Friday that coal remains in high demand, and that Russian coal designated for Europe would be redirected to other markets if the EU refused to import it.

The European Union on Friday officially adopted its fifth package of sanctions against Russia since Moscow sent troops into Ukraine, including bans on the import of coal, wood, chemicals, and other products.

“Coal is still a highly sought-after commodity. While European consumption is being phased out, there will be a certain grace period during which coal flows will be redirected to alternative markets,” Peskov said.

The ban on coal imports will take full effect from the second week of August, and no new contracts can be signed from Friday onwards.

According to the Russian energy ministry, Russia exported a total of 223 million tonnes of coal last year, of which 48.7 million tonnes, or 22%, went to Europe.

Russian Energy Minister Nikolai Shulginov warned on social media on Friday that Europe’s decision to abandon Russian coal would backfire, as he expects the process of replacing coal shipments from Moscow to take time and increase costs.

He reiterated that Russian coal companies would redirect supplies but did not specify which markets they would target. Japan, which joined earlier sanctions imposed by the United States and the European Union, also announced on Friday that it would ban coal imports from Russia.

Source: Helenic Shipping / Reuters (Reporting by Reuters; Editing by Kevin Liffey, Kirsten Donovan)