The Energy Information Administration (EIA) reports a significant increase in U.S. coal exports to Europe, primarily driven by European Union (EU) sanctions on Russian coal. The data reveals that between August 2022 and July 2023, U.S. coal exports to Europe surged by 22%, reaching a total of 33.1 million metric short tons (MMst). This marks a notable increase compared to the 27.1 MMst exported during the same period in the previous year (August 2021–July 2022), as explained by the EIA.
In 2021, Russia supplied Europe with 84.6 MMst of coal, which constituted approximately one-third of Russia’s total coal exports. However, in response to Russia’s full-scale invasion of Ukraine in February 2022, the EU imposed sanctions on Russian coal in April 2022. These sanctions included a grace period for pre-existing contracts, which extended until August 2022.
When the EU’s ban on European buyers importing Russian coal came into full effect in early August 2022, imports of Russian coal to Europe virtually ceased. In response, the United States, along with other coal-exporting countries like South Africa and Colombia, stepped in to fill the void. Notably, while U.S. coal exports increased to Asia and South America during this period, they declined in Africa, Australia and Oceania, and North America.
As a flexible, higher-cost supplier in the global steam coal market, the United States was well-positioned to redirect its steam coal exports to Europe. Over the 12 months following the full implementation of EU sanctions (from August 2022 to July 2023), U.S. steam coal exports to Europe totaled 14.4 MMst. This represents a 51% increase compared to the preceding 12-month period (August 2021–July 2022).
This surge in U.S. coal exports to Europe was complemented by a 6% increase in exports to Asia. However, it contrasts with declines in U.S. steam coal exports to the other four continents where the United States typically exports steam coal. One key factor contributing to this boost in U.S. coal exports to Europe is the comparable quality of U.S. steam coal to that produced by Russia. Both countries offer premium-quality bituminous coal with a high heating value, making U.S. coal a natural substitute in the European market.
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