Source: Russia’s coal exports may fall by 10–22% in 2020

MOSCOW, May 25 (PRIME) -- Russia’s consumption of coal may contract by 20–33 million tonnes, or by 4–12% in 2020, while exports may shrink by 10–22% this year, a source who participated in a meeting of Energy Minister Alexander Novak with the State Council’s working group on energy told PRIME on Monday.

The coronavirus pandemic hurts the coal industry reducing demand for energy. Coal producers of the Kemerovo Region suffer most, while the regions close to Russia’s border, like the Khabarovsk Region, managed to keep or even raise coal production. Exports to the West are falling, while demand in the East stayed relatively the same, the source said.

“In general, we expect consumption of Russian coal on the internal market to fall by 4–12% in 2020, or by 20–33 million tonnes. Regarding exports, it may contract in the range of 10–22% depending on development of this or that scenario,” Novak’s report read as cited by the source.

In January–June, domestic sales of coal shrank by 9.4% on the year, while exports decreased by 9.1%. Average daily production of coal contracted by 11.1% in the period, the source said.

The Federal Customs Service said earlier that Russia’s coal exports went up 2.9% to 205.394 million tonnes in 2019.

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