From Siberia to Poland

Siberian Coal Energy Company (SUEK) is preparing to open an office in Poland - the company's first representation outside of Russia - according to daily Puls Biznesu. The Russian coal giant's entrance into Poland could have a serious impact on the domestic market. The company's coal-production output is equal to the potential of the whole of the Polish coal industry. SUEK produced 89.7 million tonnes of coal in 2006, while Polish production last year stood at 94.4 million tonnes. SUEK's exports grew by 26 percent last year reaching 23.7 million tonnes.

According to experts, SUEK has another advantage over the Polish players in the industry. Its Siberian coal is of good quality and has a low sulfur content, and the demand for low-sulfur coal has been rising. "In the UK, this coal is very popular due to environmental restrictions," Jerzy Galemba, a spokesperson for Węglokoks said. Two years ago during an international coal conference, SUEK officials mentioned Poland as one of their key expansion markets, due to favorable location, according to Galemba. "They can send the coal to us directly by rail," he explained.

Additionally, SUEK plans to establish an energy company with energy giant Gazprom by the end of June.