Disruptions in coal supplies from Australia due to rains allow Russia to temporarily stabilize demand for coal in Asia. Antonina Levashenko, Head of the International Best Practices Analysis Department at the Gaidar Institute, told “Prime”.
"Australian supplies are dependent on climatic factors. For example, the key coal ports of Queensland since February are forced to reduce exports due to heavy rains, which, according to GMK Center data, for January - May 2025 already resulted in a 7.2% drop in exports from major buyers (China, Japan, Taiwan)," the expert noted.
Antonina Levashenko added that Indonesia is also experiencing a decline, as China has reduced coal imports from that country by 10% due to the new system of Indonesian coal price formation.
"All this gives Russia, despite the problems (logistical difficulties, loss of major markets due to sanctions, lower profitability) the opportunity to temporarily restore stable demand for coal in its Asian destinations (China, India, South Korea, Taiwan), to enter new markets (e.g. Vietnam). In addition, in the perspective of 2025-2027, the recovery may be facilitated by the development of a dialogue with Russian coal importers on the transfer of payments in national currencies (for example, such practice is already applied in the trade processes of Russia and China), as well as the introduction of state support measures by the Government from 2025 (e.g., subsidies for coal transportation)," the expert assessed.