Kazakhstan Obtains EU Exemption to Maintain Coal Exports to Europe
Kazakhstan has secured an exemption from the European Union (EU) allowing the continued transit of its coal exports to European markets, the Ministry of Trade and Integration reported on July 29. The agreement follows several months of diplomatic engagement prompted by the EU’s 16th sanctions package against Russia, which had disrupted traditional supply routes.
The sanctions, adopted in February, prohibited transactions with multiple Russian ports, including Ust-Luga, a critical transit hub historically used for transporting Kazakh coal to Europe. In response, Kazakhstan initiated negotiations with the EU through its Ministry of Foreign Affairs and its Mission to the EU, submitting a formal request to the European Commission for adjustments to the sanctions framework.
The EU subsequently included a targeted exemption in its 18th sanctions package, enabling the continued use of specific Russian ports for the transit of Kazakh coal under strictly defined conditions. The exemption stipulates that the coal must originate exclusively from Kazakhstan; ownership must remain with entities not subject to EU restrictive measures; and the ports may only be used for transit, with no purchase, sale, or production activities permitted on site.
The European Union is one of Kazakhstan’s key coal export destinations. In 2022, EU markets accounted for 45% of Kazakhstan’s coal exports, totaling 4.4 million tons valued at $419.2 million. This figure rose to 54.3% (6.1 million tons worth $382 million) in 2023 but decreased slightly in 2024 to 51.8% (5.2 million tons worth $312.5 million).
Between January and May 2025, Kazakhstan exported 1.6 million tons of coal to the EU, representing 38.5% of the country’s total coal exports and generating $82.9 million in revenue.
Photo credit: inbusiness.kz
