The Ministry of Economic Development predicts a decrease in coal production in Russia

MOSCOW, 28 Sep — PRIME. The Ministry of Economic Development in the baseline scenario predicts a decrease in coal production in Russia in 2022 by 4.2%, to 421 million tons, in 2023 – by another 9.5%, according to the forecast for the socio-economic development of the Russian Federation for 2023-2025, prepared by the ministry.

“In the baseline scenario, the expected volume of coal production in 2022 is estimated at 421 million tons (-4.2% yoy). 2023 – -9.5% yoy,” the forecast says.

According to the table, after a sharp decline in 2023, production will return to growth in 2024, increasing by 5.5%, and then by another 4.8% in 2025.

The Ministry indicates that in 2021 the volume of coal production in the Russian Federation amounted to 439 million tons (+ 10.3%), while noting that in recent years the main condition for the growth in coal production is the growth of its export supplies.

The document notes that the prospects for the development of the coal industry are related to the ability of the industry to reorient export flows from the European direction to alternative markets, as well as the level of coal consumption for various purposes in the domestic market. In particular, according to the Ministry of Economic Development, taking into account the ongoing gasification of the Russian Federation, the most promising direction for stimulating the growth of domestic consumption is coal chemistry and the industrial use of coal other than as a fuel.

In 2021, according to the document, 163 million tons (37% of coal production) were supplied to the domestic market, of which 37 million tons were supplied to the coke industry, 72 million tons were to the heat and power industry, and supplies to housing and communal services amounted to 28 million tons.