Falling prices and sanctions affect Russia's coal sector

Coal-producing companies lost 2.8 billion dollars in the first 7 months of the year. By 2023, the sector had made a profit of 4.7 billion dollars. The coal sector makes a modest contribution to the Russian economy, accounting for around 1% of GDP, but it employs 140,000 people. 13% of companies have gone bankrupt this year. Falling prices and sanctions are putting the entire sector under pressure, and only the big players are likely to weather the storm. Russian producers are having to grant substantial discounts to Asian buyers, who are the only ones willing to buy Russian coal, on the margin of an international coal price that has fallen sharply over the last year (-30%).