Resilience and Challenges: Examining Russian Coal Production in the Face of Sanctions
Despite the imposition of sanctions, Russian coal production witnessed a significant surge in 2022.
Remarkably, the country successfully redirected more than 70 million tons of cargo from Europe to alternative destinations in the Mediterranean and Pacific regions.
This accomplishment is particularly noteworthy considering the intricate nature of Russia’s domestic logistics, which involve transporting coal over vast distances of over 5,000 kilometres from Kuzbass to ports situated in the Far East, Baltic, or Black Sea regions.
However, despite these achievements, the growth in Russian coal production has begun to stagnate in 2023.
This deceleration can possibly be attributed to the constraints imposed on the export of technology and mining equipment to Russia, compounded by the recent weakness of the Ruble.
Source: DBX Commodities