Ukraine's largest vertically-integrated steelmaking company Metinvest has announced that raw material supplies from Krasnodon Coal to the company's enterprises are being blocked. On January 13, 48 railcars from Krasnodon Coal bound for Metinvest subsidiaries Azovstal and Avdiivka Coke, were held up at the Krasnyi Liman railway station in the Donetsk region of eastern Ukraine for inspection by the State Fiscal Service of Ukraine. Five days later, the railcars were seized by the Security Service of Ukraine.
During judicial proceedings on January 22, a resolution was adopted to release the railcars. However, the station is still holding the railcars, citing the prohibition by the Security Service of Ukraine.
The situation is becoming worse because new railcars arriving at Krasnyi Liman are also getting held up. As of January 29, the station had blocked a total of 144 railcars carrying coal and scrap, while another 166 railcars are in transit to the station. There are another 336 railcars with coal products from Krasnodon Coal on this railway section bound for Metinvest's enterprises.
Interruptions in supplies from Krasnodon Coal may lead to reduced production at Metinvest's metallurgical enterprises and could cause Avdiivka Coke's batteries to suspend production.