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Despite Sanctions, EU Allows Kazakhstan to Export Coal Through Russian Ports

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Despite Sanctions, EU Allows Kazakhstan to Export Coal Through Russian Ports
A cargo ship is unloading coal at a coal terminal. (Source: Getty Images)

Kazakhstan has reached an agreement with the European Commission to lift the ban on the transit of its coal through Russian ports, the Ministry of Trade and Integration of the Central Asian nation announced on July 29.

The ban on dealings with certain Russian ports, introduced as part of the EU's 16th sanctions package in February 2025, reportedly threatened the stability of Kazakhstan's coal exports to Europe, particularly via the Ust-Luga port, which has historically been a key transit point to the continent, The Moscow Times reports.

Following negotiations under the 18th sanctions package, amendments were made by the European side, allowing the exemption of certain Russian ports from the ban for Kazakhstan's coal transit, according to The Moscow Times.

However, the key condition for coal to be transported through Russian ports is that it must be of exclusively Kazakh origin. Additionally, ownership of the cargo must belong to non-resident entities from countries not affected by the sanctions. The ports can only be used as transit areas for loading or dispatching goods, without the purchase or production of the goods within their territory.

In 2024, Kazakhstan's coal exports to the European Union fell to 5.2 million tons from 6.1 million tons the previous year. Between January and May 2025, exports reached 1.6 million tons.

"Despite the temporary decline in numbers, the measures taken offer hope for the recovery of Kazakhstan's coal exports to the EU and for the strengthening of logistics routes," stated the Ministry of Trade.

Previously, it was reported that Russia’s own coal industry crisis deepens, 51 mines face closure amid $1.3B losses.

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