News dynamics

According to information on the Russian portnews website on August 26, the Subcommittee on Customs, Tariff and Non-Tariff Supervision, and Foreign Trade Protection Measures of the Economic Development and Integration Committee of the Russian Federation Government supports the proposal of the Russian Ministry of Energy to suspend the collection of thermal coal and anthracite. The temporary measure of floating export tariffs was extended from September 1, 2024 to November 30, 2024.

The press service of the Russian Ministry of Economic Development reported that the measure aims to maintain the profitability and export volume of Russian coal enterprises.

The temporary suspension of export duties on thermal coal and anthracite was originally scheduled to run from May 1 to August 31.

At the meeting of the sub-committee, the proposal of the Russian Ministry of Industry and Trade to abolish some export duties on cast iron and hot-rolled steel was also supported. Previously, the export tariff rates for these products were reset to zero from June to July 2024. The decision is conducive to maintaining the export profitability of domestic metallurgical enterprises and maintaining production.

Russia-Ukraine war led to a sharp drop in Russian coal and steel exports

The ongoing fighting in Ukraine has dealt a heavy blow to Russian exports and the coal and steel industries have suffered heavy losses.

At present, half of Russia's coal companies are in a state of loss, and the steel industry is the industry with the most losses.

According to the Moscow Times, citing data from the Commercial Seaport Association, Russia's exports of coal and metal products through seaports have fallen sharply since the beginning of the year.

By July 2024, seaborne coal exports were down 11.4 percent and ferrous metal exports were down 15.7 percent.

Compared with the same period last year, Russian coal exports decreased by 14.4 million tons and metal exports decreased by 2 million tons. The hardest hit were steel pipe manufacturers, who suffered the most.

The decline in exports has led to widespread losses in the coal industry. At present, one out of every two coal companies in Russia loses money. Even companies that previously remained profitable are now in trouble, with earnings down 75%.