**Russia’s Coal Industry in Crisis**
A severe crisis is affecting Russia’s coal industry, particularly in Kemerovo Oblast, the country’s main coal-producing region. This has happened because of Western sanctions and a decrease in coal export opportunities in Asia.
Kemerovo Oblast produces 60% of Russia’s hard coal and 80% of its coking coal. Eight coal companies have stopped working due to financial troubles, leaving hundreds of miners without pay for months. Kemerovo Governor Ilya Seredyuk said that falling prices on world markets, logistics problems, a shortage of personnel, and a high interest rate, combined with Western sanctions, are creating a serious challenge for the coal industry.
**Coal Exports Decline**
Russia has tried to sell more coal to Asia since losing access to Western markets. However, demand has decreased. In 2023, Indian coal imports from Russia fell by 37%, and Chinese imports dropped by 13%. As a result, total coal exports from Kuzbass fell by 10.4%, and regional production declined by 7.3% to 198.4 million tons (396 million pounds).
**Financial Losses Mount**
Despite Moscow’s growing economic ties with Beijing, Western sanctions have become an increasing obstacle to Russian-Chinese trade. This has further complicated financial losses and bankruptcies in Russia’s coal sector.
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