China Has Stopped Buying A Third Of Russian Coal
- 28.07.2025, 19:40
Beijing is a key sales market for Russian companies.
Russian coal exports to China sharply declined in the first half of 2025: in value terms, they fell by 25% year-on-year, analysts at Gazprombank's Center for Economic Forecasting (CEP) have calculated. At the same time, in April-June the collapse of supplies accelerated and amounted to 34% compared to the same period last year. The CEP recalled that Russia exports up to 50% of its coal production, and China is the key market for Russian coal companies. In 2024, the Chinese market accounted for about half of all Russian coal exports. At the same time, Russia's share in China's coal imports in 2024 decreased from 23% to 18%.
The decline in demand from China is exacerbated by a decline in the profitability of supplies due to the high cost of credit resources, a strong ruble and expensive logistics, analysts say. Thus, the severe crisis that hit the Russian coal industry after the loss of the European market and the strengthening of international sanctions continues to grow. Earlier, Deputy Energy Minister Dmitry Islamov said that 51 coal companies are under the threat of closure. In total, as of the beginning of 2024, there were 179 of them in Russia (52 mines and 127 surface mines). In 2024, the losses of the Russian coal industry amounted to 112.6 billion rubles, but this year they reached this level only at the end of January-May, said Deputy Director of the Department of Coal Industry of the Ministry of Energy Dmitry Lopatin. According to him, the total loss of the industry by the end of the year may reach 300-350 billion rubles. -
July 25, the government approved a decree on measures to support the coal industry. Until November 30, coal companies were granted a deferment on payment of mineral extraction taxes and insurance contributions. The Ministry of Finance estimated the amount of support for the industry at 63 billion rubles, and expected that about 50 companies would apply for assistance. At the same time, the ministry noted that some companies have already received individual subsidies, loan deferrals and debt restructuring. In particular, Mechel, Vorkutaugol, SDS-Ugol, Power of Siberia Management Company, Don Coals, Severny Kuzbass and SUPK, which operate 34 mines and coal mines, 16 coal preparation plants, as well as 20 metallurgical, repair and transportation and auxiliary industries, have benefited from state support.