The European Union has granted Kazakhstan an exemption permitting the transit of Kazakh coal through select Russian ports previously restricted under EU sanctions. The decision, included in the EU’s 18th package of sanctions, aims to secure Kazakhstan’s coal exports to Europe.
The exemption follows months of negotiations led by the Ministry of Trade and Integration, the Ministry of Foreign Affairs, and Kazakhstan’s Permanent Mission to the EU. The talks were prompted by sanctions introduced in February 2024 under the 16th EU sanctions package, which included a ban on transactions with Ust-Luga port, one of the main routes for Kazakh coal shipments to the EU.
“To resolve the situation, work was carried out at various levels and an official request was sent to the European Commission asking for changes to the sanctions regime,” the ministry stated. “As a result, the 18th package of EU sanctions contains amendments allowing transactions with a number of Russian ports for the transit of coal of Kazakh origin.”
Conditions of the Exemption
The exemption is conditional and tightly regulated:
- Only coal of Kazakh origin may be transited;
- Ownership of the cargo must not involve entities from countries under EU sanctions, including Russia and Belarus;
- The designated Russian ports may be used solely for transit purposes, specifically loading and dispatch, without any procurement or production activities on site.
Trade Impact
Kazakhstan remains a key coal supplier to the European market. In 2022, it exported 4.4 million tons of coal to the EU, generating $419.2 million, representing 45% of total coal exports. Although volume increased to 6.1 million tons in 2023 (54.3%), falling global prices reduced revenue to $382 million. In 2024, exports declined to 5.2 million tons worth $312.5 million (51.8%).
During the first five months of 2025, Kazakhstan exported 1.6 million tons to the EU, generating $82.9 million and accounting for 38.5% of total coal exports over that period.
“Despite the temporary decline in indicators, the measures taken are creating conditions for the restoration of export flows and increased stability of logistics routes,” the ministry said. “Kazakhstan will continue to work to protect trade interests, support national exports, and strengthen economic ties with key partners.”
As previously reported by The Times of Central Asia, domestic coal consumption in Kazakhstan is expected to decrease due to government plans to phase out pilot coal-fired power plants in favor of renewable energy and low-carbon technologies, including gas.
