Russian coal and steel industries hit hard by export decline
Due to the war in Ukraine, Russian exports have been consistently falling. As a result, every second coal company in Russia is now unprofitable. However, the most significant losses are being suffered by companies operating in the steel sector.
Russian ports have recorded a significant decline in coal and metal exports since the beginning of the year, reports The Moscow Times, citing information published by the Association of Commercial Sea Ports.
According to the association's data, since January 2024, seaborne coal exports from the Russian Federation have decreased by 11.4%, and iron metal exports by 15.7%. This means that Russia sent 14.2 million long tons of coal and 2.0 million long tons of metals less than in the same period of the previous year. However, the most significant losses were suffered by companies manufacturing steel pipes.
Companies that showed profits also experienced a decline
The decline in exports has made every second coal company in Russia unprofitable. Meanwhile, companies that had previously shown profits have recorded a threefold decrease. Profitable companies earned £660 million, which is £1.5 billion less than in the same period the previous year. On the other hand, the losses of unprofitable companies increased by 270% to £588 million.
At the beginning of this year, The Moscow Times, citing data from the Ministry of Industry and Trade, reported that in 2023, Russian companies sold goods worth £113 billion abroad. This is the value of exports excluding raw materials and fuels.
Russia had not experienced such poor results for seven years (in 2017, it was £103.45 billion). The last time the value of these exports was at a similar level as in 2023 was in 2012 – then it was around £112 billion.
Russian exports to Asian countries are increasing
As a result of sanctions, Russia's trade with European countries has significantly weakened, while the share of Asian countries in trade has increased.
The value of Russian exports to Asia has risen to 72%, and the value of imports to 68%. These data are from the Russian customs service. With the imposition of Western sanctions on Russia due to the invasion of Ukraine, the Russian authorities have stopped publishing detailed statistical data on exports and imports for each month.
