Few countries will escape higher energy prices following the invasion of Ukraine. But China is at least unlikely to suffer from disrupted coal supplies. New price controls announced this week to slow inflation are a sign of the country’s increasing reliance on the black stuff.
Russia is a large coal supplier to the world, exporting about 200mn metric tonnes a year. Europe is one of its biggest customers, led by Germany, Belgium and the Netherlands. The key Asian importers include Japan and Vietnam.
If customers respond to sanctions and political risk by shunning Russian coal, the leftover supply could mean more options for China. So far, it has not condemned Moscow, sidestepping questions over whether Russia’s attack is an invasion. That could help Beijing’s plans to control coal prices — a crucial goal. China has struggled with inflation and power outages in the past year.