Russia’s Coal Industry in Trouble
The coal industry in Russia is facing big problems. It has lost a lot of money due to the loss of Western markets and lower demand from countries that are friends with Russia.
Coal companies have reported a combined loss of 91 billion rubles (around $873 million) for the first nine months of this year. To help, Russia’s Energy Minister, Sergey Tsivilev, has promised to create a package of support for coal miners as soon as possible.
The country‘s main coal-producing region, Kuzbass, is also in trouble. It produces 60% of Russia’s hard coal and 80% of its coking coal. The minister wants to develop a plan to help the region economically.
Russia has been selling less coal abroad. From January to July, coal exports fell by 11.4% to 112.6 million metric tons. Coal sales to China, which is Russia’s main customer after Western sanctions, dropped by 8% in the first half of this year.
Russia’s economy is also struggling with oil sanctions. The Biden administration is considering new and harsher oil sanctions against Russia ahead of a change in US leadership. Oil revenues are important for funding Russia’s war efforts in Ukraine.
The coal industry is not the only one facing problems. Sanctions have also affected the Ozernoye zinc mine, making it hard to replace equipment. This might impact global zinc supply forecasts for 2025.
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