Russian coal exports to China decreased by 25% YoY in 1H 2025 in value terms. Moreover, the decline in supplies accelerated in Q2 2025: 34% YoY compared to 14% YoY in Q1 2025
Russia exports up to 50% of coal, while the high cost of credit resources, a strong ruble and expensive logistics due to the long shipping shoulder to the port have a painful effect on the profitability of such supplies. China is a key market for Russian coal, accounting for about half of all exports in 2024. Russia accounted for 23% of China's coal imports in 2023, and 18% in 2024.
On July 25, the Russian Government approved a decree on measures to support the coal industry. Until November 30, coal companies received a deferral in the payment of taxes on mining and insurance premiums. We believe that this measure, together with the reduction in the cost of coal transshipment in ports this year and the expected weakening of the ruble exchange rate, will be effective in the absence of bankruptcy proceedings against debtor organizations.
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