MOSCOW, June 13. /TASS/. Sanctions against Russian coal miners will result in contraction of exports and the rise in coal prices in coming years, Maxim Khudalov from Vector X investment company told TASS.
The situation with constraints is grave for the coal sector, particularly for steam coal miners, because low prices and high logistical costs will not make it possible for coal producers to keep positions achieved over the last two years, the expert said. "The situation is less dramatic for coking coal suppliers but sanctions definitely reduce the industry margin that is lower even without that and narrow the potential of discounts Russian players could use to stimulate sales in the past. The situation in the industry is nevertheless cyclic and lead to soaring coal prices in the next couple of years, which will make it possible for Russian producers to compensate a share of losses sustained this and probably next year," he noted.
Inclusion of Elga coal deposit project into the US sanction list will add difficulties to the company with implementation but it will not be possible to stop or significantly delay its implementation, Khudalov said.
On June 12, the US Treasury hit Elga management company and certain companies related to it with sanctions.