The US, aiming at reducing Russia’s revenues, imposed sanctions against Sibanthracite, one of the largest metallurgical coal producers in Russia. The US Ministry of Finance sanctioned also 12 organizations, parts of the coal company’s structure.
Due to the new restrictive measures Sibanthracite is forced to redirect its supplies to the domestic market.
In January-March 2024, Sibanthracite’s output decreased to 5.7 mio t (-0.8 mio t or -14.1% y-o-y), exports down to 4.2 mio t (-2.0 mio t or -32.2% y-o-y).
Meanwhile, in 2023, coal production edged up to 24.2 mio t (+0.4 mio t or +1.7% y-o-y), while exports reached 22.5 mio t (+2.6 mio t or +10.6% y-o-y), bringing Sibanthracite’s share in Russian coal exports up to 10.6%.
As a result, since the beginning of the year, 30% of Russian coal exports have fallen under the US sanctions, taking into account the volumes of SUEK and Mechel, which undermines energy security of importing countries.
Considering the volumes exported in Q1 2024, the reduction of Russian export supplies in 2024 because of sanctions will amount to about 50 mio t, and almost 65 mio t of coal will be removed from the global market in 2025, if the sanctions regime remains in place.
Source: CAA
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