Putin orders urgent action to save Russia's coal industry

Kremlin leader Vladimir Putin has demanded that emergency measures be taken to support Russian coal companies that are suffering multibillion-dollar losses and are on the verge of large-scale bankruptcies.

Source: Russian online newspaper The Moscow Times

Details: Russia's Energy Minister, Sergei Tsivilyov, stated that Putin has ordered the development of an aid package for coal miners "as soon as possible."

A separate issue, according to Tsivilyov, is the programme for the socio-economic development of Kuzbass, Russia's main coal region, which accounts for 60% of hard coal production and 80% of coking coal.

From January to July, total coal exports from Russia dropped by 11.4%, to 112.6 million tonnes. Even supplies to China, now the primary customer for Russian coal miners after sanctions, fell by 8% in the first half of the year.

Background:

• China, the largest buyer of Russian coal on the global market, has cut coal imports from Russia.
• The share of unprofitable coal companies in Russia exceeded 52%, and coal exports fell by 12%.
• In July 2024, coal production in Russia declined by 6.7% year-on-year, with a total output of 31.5 million tonnes – the lowest level since the Covid-19 pandemic.
• Russian coal exporters started shipping supplies to China via North Korea.

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