The Central Bank announced a rise in the price of coal exports from Siberia to Asia

Russian companies continue to export coal from Siberia to Asia through the southern and northwestern ports, although its transportation to Asian markets in these directions has risen in price. This was reported in the analytical review of the Central Bank (.pdf).

The main reason for the continuation of deliveries despite the minimum profitability in the regulator is the desire of companies not to lose customers and comply with the terms of contracts. “Expenses for chartering vessels, insurance services have increased, and railway tariffs have increased. Deliveries to Asia through the ports of the South and North-West are already on the verge of profitability, ”the Central Bank notes.

At the same time, large companies refuse to radically reduce the production program, since high oil prices (in 2021 and the first half of 2022) allowed producers to accumulate reserves.

Representatives of the regulator emphasize that the weakening of sectoral sanctions of the European Union allowed companies to increase the volume of exports and production.

At the end of 2022, coal production in Russia increased by 0.3% to 442 million tons, but exports decreased by 7.6%. By providing discounts, Russian exporters increased coal deliveries to South Korea, which was also facilitated by a short transport distance from the Far East.

Read more about the export performance of the Russian coal industry – in the material “Kommersant” “Coal floated more energetically”.

Andrey Sapozhnikov