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Home Coal Production

Putin approves increase in Russian coal exports eastwards

Editor by Editor
2 years ago
min read2 min
Russian coal exports
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On March 02, 2021, during the meeting on the development of Russian coal industry, Vladimir Putin criticized global green energy initiatives, referring to Texas as an illustration of negative consequences of state’s dependance on renewables.

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An unprecedented winter storm in the southern U.S. state cut off half of its wind power. Under the statement of the president, non-renewable energy was used to move frozen wind turbines back online in Texas during last month’s deep freeze.

Apart from that, Vladimir Putin called for increase in Kuzbass coal exports to the East by 2024. Despite the negative fundamentals on the world coal market and limited railway capacities of Baikal-Amur Mainline (BAM) and the Trans-Siberian Railway (TSR), Kuzbass miners shall ramp-up exported coal supplies to 68 mio t per year.

This figure is in the middle of the estimates, stipulated by the strategy of the development of the Russian coal industry until 2035. Under the low scenario, deliveries from Kuzbass to the east are expected to surge to 58 mio t. The high scenario provides for an increase to 77 mio t. Nevertheless, in November 2020, The Russian government decided to keep the export quota of Kuzbass for 2021 unchanged at 53 mio t.

Also, Vladimir Putin spoke in favor of National Welfare Fund financing the expansion of BAM railway capacities to boost coal exports from Yakutia. On February 12, 2021, first Deputy Prime Minister of Yakutia Kirill Bychkov proposed Russian Railways to conclude agreements with coal producers on guaranteed volumes of exported coal to be transported to the ports of the Far East.

Under the statement of Bychkov, in 2021 the mining companies of Yakutia plan to increase coal extraction to 39 mio t and by 2024 – up to 80 mio t.

There are two large coal suppliers in the region – Kolmar and Elga. Both companies intend to enhance production volumes as well as existing port capacities. A new coal terminal Vaninotransugol (VTU), constructed by Kolmar’s subsidiary, assumes a gradual increase in coal handling capacity from current 12 mio t per year up to 24 mio t by 2022.

Albert Avdolyan’s A-Property also plans to construct a coal terminal in the port of Vanino with annual capacity of 30 mio t by 2024 and build a washing plant at Elga with a processing capacity of 32 mio t at the first stage (end of 2021) and 45 mio t at the second stage (2023).

As regards the development of the Russian Far East capacities, the previous target of 180 mio t by 2024 remains the same.

Source: CAA Analytics

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Tags: CAA AnalyticsRussian coal exports
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