China Shunning Russian Coal With Banks Nervous Over Sanctions
- Power plants and steelmakers looking for alternative supplies
- Chinese lenders advise state-owned firms to halt purchases
Coal in freight wagons ahead of shipping at Tomusinskaya railway station near Mezhdurechensk, Russia.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Chinese power plants and steelmakers are looking for alternatives to Russian coal after some domestic banks suggested they avoid purchases due to the mounting sanctions being imposed on Moscow.
Some state-own firms were sent private client notes by the lenders advising them to halt buying Russian coal as tightening global restrictions could cause “unexpected damage” to China’s importers, according to people with knowledge of the matter who asked not to be named as the issues are commercially sensitive.