Russia has one of the largest coal industries worldwide. The country possesses the second-largest
after the United States. Production of this fossil fuel is especially developed in Siberia and the Far East.
. The coal produced in the country is primarily supplied to power generation, coking, and export trade. Russia is home to several major coal companies, such as Siberian Coal Energy Company (SUEK), Kuzbassrazrezugol (KRU), and SDS-Ugol.
Several Western countries, such as European Union (EU) members and the United States, banned coal imports from Russia as part of the sanctions in response to the invasion of Ukraine, while China increased the imports. In total, Russia has shipped over 32 billion euros worth of
coal to China since the invasion as of December 2024, while coal exports to India exceeded 12 billion euros.
Coal export shift to Asia
Russia aspires to become the world's leading coal exporter. At the moment, the
country exports the third-largest volume of coal after Indonesia and Australia. In the 2010s, Russia's
coal export shipments increased, and in 2023 they exceeded 207 million metric tons. The industry is shifting its coal export ambitions to Asia-Pacific (APAC) markets —
China being the leading destination. Russia is upgrading and expanding the Trans-Siberian and Baikal–Amur Mainline (BAM) railroads, which carry coal and other commodities for export to Asian countries. For the coal sector, a shift to Asia is considered an opportunity to generate as much revenue from coal exports as possible before the demand for that fossil fuel declines in all global regions.
Industry modernization
The industry is undergoing transformation under a state program until 2035. One of the steps in the development strategy is opening new mines. As of April 2024, 34
new coal mines were proposed in the country, 12 of which were already under construction. Other steps involve modernization of infrastructure and employment of deep coal processing. The latter refers to technology that enables production of liquid fuels, coke, and other chemical products from coal. This would enable companies to process coal directly at their sites and increase their earnings by selling processed products.
Outlook
According to the scenario that considers that the global energy policy follows its current trajectory,
Russia's coal production will decrease from 9.4 exajoules in 2022 to 3.2 exajoules in 2050. An even more significant decline is forecast under the Net Zero scenario. Furthermore, under both scenarios,
consumption of primary energy from coal is projected to see a reduction.
Life of mine closures, referring to the final stage of certain mining operations, are expected to result in over 17,000 potential layoffs at SUEK by 2050.
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