European Union set to ban Russian coal, but struggles on oil and gas

The European Union is poised to ban Russian coal in the first sanctions on the vital energy industry over the war in Ukraine, but it has underlined the 27 nations’ inability to agree on a much more sweeping embargo on oil and natural gas that would hit Russia harder but risk recession at home.

The coal ban, which is expected to be approved in a new package of sanctions this week, would cost Russia $4 billion a year, said the European Commission, the EU’s executive arm.

Energy analysts and coal importers say Europe could replace Russian supply in a few months from other countries, including US. The coal ban is significant because it breaks taboo on severing energy ties with Russia.