Kazakh Coal to Keep Flowing to Europe Under New EU Agreement

The Kazakh Ministry of Trade and Integration has announced that an agreement was successfully reached with the EU to allow the continued transit of Kazakh coal to Europe via Russian ports, despite the EU’s ongoing sanctions against Russia.

The breakthrough follows prolonged negotiations prompted by the EU’s 16th sanctions package, adopted in February 2024, which banned transactions involving several Russian ports, including Ust-Luga-a key transit hub historically used by Kazakhstan for coal shipments to the EU, The Caspian Post reports, citing Kazakh media.

In response, the Ministry of Trade and Integration, working closely with the Foreign Ministry and Kazakhstan’s Mission to the EU, initiated formal discussions with European counterparts. An official request was submitted to the European Commission seeking an exemption to ensure the continuity of coal exports.

As a result, the EU’s 18th sanctions package was amended to include a special exemption for Kazakh coal, allowing the use of certain Russian ports under strict conditions:

The coal must be entirely of Kazakh origin;

Cargo ownership must exclude residents or entities from countries under EU restrictions;

The ports must serve only as transit points, without engaging in the purchase, production, or storage of goods.

According to official statistics, Europe remains Kazakhstan’s primary coal export market. In 2022, the EU accounted for 45 per cent of Kazakh coal exports (4.4 million tons worth $419.2 million). This figure grew to 54.3 per cent (6.1 million tons, $382 million) in 2023, before dipping to 51.8 per cent (5.2 million tons, $312.5 million) in 2024.

From January to May 2025, Kazakhstan exported 1.6 million tons of coal to EU countries, worth $82.9 million, representing 38.5 per cent of the country’s total coal exports during the period.

While coal volumes have fluctuated due to geopolitical constraints, the newly secured exemption is expected to restore trade stability, optimize logistics, and ensure continued access to European markets.