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Home Coal Demand

Russian coal exports to drop by 20% due to sanctions

Editor by Editor
1 year ago
Reading Time: 1 min read
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Russian coal exports to drop by 20% following a sanctions announcement by the United States.

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On February 23, the United States extended sanctions against the Russian energy and mining and metallurgical sectors by including Russian coal companies SUEK and Mechel.

The U.S. Treasury Department has set deadlines for termination of transactions with these organizations until April 8, 2024.

Moreover, the companies on the sanctions list are deprived of the possibility to use the dollar for settlements, and their counterparties face the risk of secondary sanctions.

In 2023, SUEK exported 37.1 million tons of coal, while Mechel’s export supplies totaled 5.2 mio t, bringing their share in Russian coal exports to 17.5% and 2.5%, respectively.

Thus, 20% of Russian coal exports volume falls under the sanctions, undermining the energy security of importing countries.

According to preliminary estimates, in January-February 2024, SUEK exported 5.8 mio t of coal, Mechel shipped 0.8 mio t. Taking into account the volumes supplied in the beginning of the year, Russian coal export in 2024 as a result of sanctions will drop by more than 30 mio t and, if the sanctions regime is maintained, more than 40 mio t will not reach the market in 2025.

Source: CCA


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Tags: MechelRussian coal exportsSuek
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