**China’s Russian Coal Imports See Slight Increase**
In a surprise move, China’s imports of Russian coal in March rose by 6% year-on-year, according to data from Beijing’s General Administration of Customs. This marks a turnaround from the previous year, when Chinese demand for Russian coal was decreasing.
The development is significant, as it comes after Russia’s coal exports to China dropped by almost 7% in 2024 compared to 2023. The decline had been attributed to several factors, including Western sanctions, insufficient transport infrastructure, and Chinese tariffs levied on Russian coal.
However, the latest data shows that March imports were up 6% year-on-year to 7.33 million metric tons. This slight increase may be seen as a positive sign for Russia’s coal industry, which has been facing multibillion-dollar losses and mass bankruptcies.
**A Rocky Road Ahead**
Despite this slight gain, the Russian coal industry still faces significant challenges. Western sanctions have presented an increasingly serious obstacle to Russian-Chinese trade relations, while falling prices on world markets, problems with logistics, a shortage of personnel, and high key rates continue to plague the sector.
The Kemerovo Oblast, or Kuzbass region, which accounts for 60% of Russia’s hard coal production and 80% of its coking coal, has been hit particularly hard. Eight coal companies in the region have halted operations, leaving hundreds of miners without pay for months.
**A Blow to Russian-Chinese Trade**
The development is a blow to growing economic ties between Moscow and Beijing. Despite increasing trade relations, Western sanctions have created a serious challenge for the coal industry. As one official noted, “Falling prices on world markets, problems with logistics, a shortage of personnel, and a high key rate — along with Western sanctions — have created a serious challenge for the coal industry.”
The increase in Chinese imports is a small silver lining in an otherwise bleak picture. However, it remains to be seen whether this development will signal a turnaround for Russia’s struggling coal industry.
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