Coal and steel sectors hit hardest by slump in russian exports
5:09 PM EDT, August 17, 2024
Due to the war in Ukraine, Russian exports are systematically declining. As a result, every second coal company in Russia is unprofitable. However, the most significant losses are faced by companies operating in the steel segment.
Russian ports have reported a significant drop in coal and metal exports since the beginning of the year, according to the Moscow Times, citing information published by the Association of Commercial Sea Ports.
According to the association's data, as of January 2024, seaborne coal exports from the Russian Federation decreased by 11.4% and ferrous metals by 15.7%. This means that Russia sent 15.9 million short tons of coal and 2.2 million short tons of metals less than in the same period last year. However, the most significant losses were incurred by companies producing steel pipes.
Companies that were profitable also saw a decline
The decline in exports means that currently, every second coal company in Russia is unprofitable. On the other hand, companies that had been profitable experienced a threefold drop. Profitable companies earned 81.1 billion rubles, which is 178 billion less than in the same period last year. Meanwhile, the losses of unprofitable companies increased by 270% to 72 billion rubles.
At the beginning of this year, the Moscow Times, citing data from the Ministry of Industry and Trade, reported that in 2023, Russian companies sold goods abroad worth $146.3 billion. This is the value of exports excluding raw materials and fuels.
Russia had not experienced such poor results for seven years (in 2017, it was $133.9 billion). The last time the value of this export was at a similar level as in 2023 was in 2012—it was about $145 billion then.
Russian exports to Asian countries are increasing
As a result of sanctions, Russia's trade with European countries has significantly weakened, while the share of Asian countries in trade has increased.
The value of Russian exports to Asia rose to 72 percent, and the value of imports to 68 percent. These are data from the Russian customs service. Along with the imposition of Western sanctions on Russia due to the invasion of Ukraine, Russian authorities stopped publishing detailed statistical data on exports and imports from each month.
