The loading of Kuzbass coal by rail has been operating at just 60-70% of the volumes agreed with Russian Railways, a point raised by Kuzbass Governor Sergey Tsivilev during the State Council commission meeting on the Energy direction in Novokuznetsk, as reported by TASS. The delegation emphasized that the shortfall in export shipments to western and southern destinations began in April, with shippers noting a sharp drop in volumes and Russian Railways declining to accept more than 60-70% of the contracted loading quotas.
Governor Tsivilev explained that last year President Vladimir Putin directed the export of 58 million tons of coal, yet only 48 million tons were shipped. In 2023, shipments rose to 63 million tons, but the guaranteed export agreement remained set at 50 million tons. This gap between targets and actual deliveries has produced tangible strain on the region, affecting tax revenues and the broader economic situation in Kuzbass, especially as coal prices have softened.
The consequences extend beyond government budgets. Local businesses, workers, and suppliers tied to the coal sector have felt tighter margins, delayed projects, and the potential for job volatility as export volumes lag behind commitments. Analysts note that when export flows are constrained, regional economies dependent on mining and related services bear the first and loudest impact, even as other sectors try to compensate.
In related industry analysis presented to national audiences, Kommersant highlighted a development from the same period. The presentation from the Neft Research consulting group notes that, since the beginning of the year, discounted trading of Russian coking coal in foreign markets has ceased. A primary driver behind the withdrawal of discounts from foreign benchmarks was the alignment of blast furnaces with specific coal grades, a factor that complicates price competition and market access for Kuzbass coal in global markets. This shift underscores the delicate balance between price signals, production quality, and export strategies in Russia’s coal export framework, with ripple effects for regional exporters and buyers alike, as well as for the communities that rely on steady coal trade (as reported by Kommersant).