The Russian government eliminated export duties on thermal and coking coal, as well as anthracite, introduced in September 2023 until the end of 2024 at the rate of 4-7% and tied to the USD/RUB exchange rate.
This initiative is probably due to the return of import duties in China, which share in Russia’s coal exports jumped from 32% in 2022 to 48% in 2023. Starting from January 2024, China is reimposing a 6% duty on imported thermal coal, as well as a 3% duty on coking coal and anthracite. This step can make supplies from Australia and other ASEAN countries more attractive for Chinese consumers because of zero-tax trade agreements.
In addition, amid higher Russian Railways tariffs, rising production costs, freight and transshipment rates, and falling indices on the international coal market, the authorities seek to support the competitiveness of Russian suppliers, as the coal industry is strongly intertwined with the development of new logistics routes, including the Northern Sea Route.
However, the Russian government is now likely to have an opportunity to increase the mineral extraction tax, considered in 2023 but postponed, following the introduction of export duties.
Source: CAA
