The Russian coal industry is losing key markets
China is reducing its imports of russian coal. In effect, russia’s key partner is turning away from its coal industry, which is already in a state of deep crisis. In the first half of 2025, coal exports from russia to China dropped by 25%, and in the second quarter — by 34% year-on-year.
▫️The situation is critical, as China previously accounted for half of all russian coal exports. Now even this market is shrinking. Despite the kremlin’s bet on a “pivot to the East,” it’s becoming clear: even russia’s most important partners do not need its coal.
▫️The export decline is accompanied by rising costs for companies due to expensive loans and logistical difficulties. As a result, the coal mining industry is on the brink of collapse — a fact already officially acknowledged : earlier, the ministry of energy of the russian federation warned that 51 out of 179 coal enterprises are at risk of shutting down.
russian economy is paying a high price for its armed aggression against Ukraine. Crisis trends in the coal industry only confirm the deep structural problems of the russian economy, which are worsening amid international isolation and war.
