Coal supplies from Siberia to Asia via the ports of Russia’s South and North-West are on the verge of profitability - Bank of Russia
The increase of expenses for coal exports is driven by an increase in charter rates and cost of insurance services
Coal supplies from Siberia to Asia via the ports of Russia’s South and North-West are on the verge of profitability but the companies continue exporting the product to prevent the disruption of their contracts and the loss of their clients, according to the February issue of the report “Regional Economy: Commentaries by Bank of Russia Main Branches”
In December 2022 – January 2023, the state of Siberian coal mining was determined by anti-Russian sanctions and limited opportunities for coal transportation. At the same time, the easing of EU restrictions on the transportation of Russian coal made it possible to build up production and export volumes. In December, the production increased by 7% versus November, coal exports from Kuzbass increased by 2% in December. The industry was also supported by the growth of internal consumption: coal supplies to the energy sector rose by a quarter. Moreover, in 2021 and the first half of 2022, high coal prices let large producers accumulate reserves which currently lets them avoid radical reduction of their production programme.
According to representatives of the Siberian coal business, the increase of expenses for coal exports to the Asian markets is due to an increase in charter rates, cost of insurance services and railway tariffs.
In 2022, Russian seaports handled 206.5 million tonnes of coal, up 1.8%, year-on-year.
