Steel Mont Trading Ltd has refused to supply coal from South Africa to Ukrinterenergo, Ukraine's Minister of Energy and Coal Industry Yuriy Prodan has said.
“Unfortunately, the company that supplied coal has stated it would not continue supplies to Ukrinterenergo,” he said at a Cabinet meeting in Kyiv.
According to him, at least 1.5 months are needed to sign new contracts for the supply of imported coal, and the current development of the situation regarding the contract between Steel Mont and Ukrinterenergo could make other companies refuse to do business with Ukraine.
“When the work of the company is seriously blocked, major European traders refuse deliveries, as at any time shipping at the port or payments could be halted,” Prodan said.
The minister also said that Ukrinterenergo would continue negotiations and try to assure that the Ukrainian side will fulfill all the obligations under the contract.
In this regard, the minister said that Ukraine would be forced to buy deficit anthracite coal from Russia or the Ukrainian territory of Donbas controlled by pro-Russian militants.
