Russia's Coal Industry Plunges as Exports to China Collapse

Edited and Updated by Ethan Ma
Aug 6, 2025

Russia's coal industry is facing its worst downturn in years. In the first half of 2025, coal exports to its largest and most critical customer—China—dropped sharply, signaling deeper trouble for a sector already battered by sanctions and shifting global demand.

According to Russian media citing analysts from the Gazprombank, Russia's coal exports to China fell by 25% between January and June. The situation worsened in the second quarter, with exports declining 34% year-on-year from April to June.
In 2024, China accounted for roughly half of Russia's coal exports. The sudden plunge in Chinese demand has further compounded the challenges facing Russia's coal industry, which has been reeling from the loss of European markets following the outbreak of the Russia-Ukraine conflict.

Roughly half of Russia's coal production is exported, but its share in the Chinese market is shrinking. As China increasingly turns to other suppliers and domestic consumption patterns evolve, Russia’s share of China’s coal imports fell from 23% in 2023 to just 18% last year.

Reports indicate that along with declining exports, rising costs—driven by high-interest loans and logistical difficulties—are pushing the Russian coal mining sector to the brink of collapse. The crisis is reportedly threatening the survival of dozens of Russian coal producers.

Dmitry Islamov, Russia’s Deputy Minister of Energy, recently warned that 51 out of the country’s 179 coal enterprises—including 52 underground and 127 open-pit mines—are at risk of closure.

According to Russia’s Federal State Statistics Service, the coal sector posted a net loss of 136.2 billion rubles (USD 1.7 billion) from January to May 2025, compared with a profit of 9.1 billion rubles during the same period last year. Loss-making companies accounted for 64.9% of the industry, up from 50.9% a year earlier.

Chinese customs data shows that China imported 43.62 million tonnes of Russian coal from January to June this year, a decrease of 2.01 million tonnes or 4.4% year-on-year, accounting for 20% of China’s total coal imports.