Russia’s coal industry will continue to struggle

Significance The reorientation of sales from Europe to Asia following Western sanctions has increased costs and driven down profits. According to the state statistics agency Rosstat, only 48% of coal companies have been profitable this year compared to 64% in 2023. Impacts Crude oil sales will continue to account for the bulk of Russian hydrocarbon exports. Gas exports are unlikely ever to recover to pre-war levels. China and India will continue to rely heavily on coal as a primary energy source.