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Poland to boost coal imports, subsidies amid Russia sanctions

Poland will develop new types of coal subsidies for consumers and boost imports to make sure it has enough fuel for the heating season amid shortages and surging prices.

The European Union’s largest coal producer, dependent on the fuel for some 80% of its electricity generation, in April banned imports of coal from Russia in response to Moscow’s invasion of Ukraine.

It introduced subsidies designed to keep prices for smaller buyers at last year’s level earlier this month, but retailers are reluctant to participate in the system as payments aren’t compensating for the surge in market prices.

“There’s not much interest from private companies to participate in the subsidies system, hence we will work out new solutions to compensate consumers for the high coal prices,” cabinet spokesman Piotr Muller said on Monday.

Muller said the government will discuss new measures on Tuesday.

In an unusual move, Prime Minister Mateusz Morawiecki has also ordered two state companies to import 4.5 million tonnes of coal by the end of October to supply households amid the shortages caused by sanctions on Russia.

Russian coal imports have mostly been used by individual households and heating plants in smaller towns.

Poland imported more than 8 million tonnes of Russian coal in 2021 but the country’s shortfall is as high as 11 million tonnes due to declining local production.
Source: Reuters (Reporting by Marek Strzelecki; Editing by Kirsten Donovan)