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- Europe is desperately seeking alternatives to Russian supply amid escalating sanctions
- Yesterday, the European Union (EU) said it would phase out purchases of Russian oil, gas, and coal, a huge move from the heavily dependent region
- The move has seen customers approach suppliers of certain commodities they have had no prior connections with
- Australia is attempting to assist Europe with supplies, but after flooding and labour issues at mines, supply of coal remains scarce
- Prices of palladium, coal, and other commodities have been sent soaring as supply becomes scarce in the crackdown against Russia
Europe is desperately seeking alternatives to Russian supply amid escalating sanctions.
Yesterday, the European Union (EU) said it would phase out purchases of Russian oil, gas, and coal. Due to each country having different levels of dependency on Russian supply, the decision was made for there to be no time frame on the phase-out.
The move has seen customers approach suppliers of certain commodities they have had no prior connections with. However, a surplus supply is rare to come by as miners already have pre-arranged agreements.
European companies, who rely on Russia for 70 per cent of their coal supplies are now turning to Australia for supply assistance.
The Australian Government said it would connect Western allies to local producers in order to find alternatives. However, after flooding and labour issues at Australian mines, the supply of the commodity is already more scarce than usual.
Whitehaven Coal (WHC) and New Hope Group (NHC) said they have been contacted to help supply European countries.
Palladium has also come under massive pressure as Russia accounts for 25 to 30 per cent of global supply.
The commodity is used for engine exhausts to reduce emissions in vehicles. If prices remain high, it’s expected platinum will be substituted in.
Prices of palladium, coal and other commodities have been sent soaring as supply becomes increasingly scarce in the crackdown against Russia.
