Russia’s strategy to match Soviet levels of coal production by 2030 and free up natural gas for export is starting to show signs of faltering, as production plateaus and international demand drops. The Russian government has been trying to boost domestic energy production, but the country still relies on imports from Ukraine and other former Soviet-bloc countries. Internally, competition from natural gas companies threatens state and corporate investment in coal.
Russia’s strategy to match Soviet levels of coal production by 2030 and free up natural gas for export is starting to show signs of faltering, as production plateaus and international demand drops. As China and India become price-setters and the prominence of coal in the global energy markets declines, Russia’s coal industry has become exposed to external price volatility. Internally, competition from natural gas companies threatens state and corporate investment in coal.