Russian Coal Losses Hit $2.2 Billion

Russian thermal coal exports have fallen to 42.5 million tonnes through September 2026, a decrease of 18.6% from the same period last year. This steep decline pushed Russia out of the top three global suppliers, according to data from the analytical firm BigMint.

The loss of 9.7 million tonnes accounted for nearly half of the global contraction in thermal coal trade. Total worldwide shipments fell 3.2% to 602.5 million tonnes. Russia's share of this market segment dropped from 8.4% to 7.1%. South Africa claimed the third-place position with 52.1 million tonnes, an 8% increase over the prior year.

Indonesia remains the world's largest exporter at 240.3 million tonnes, though its volume decreased by 10%. Australia held the second spot with 151.2 million tonnes, a 2% rise. Mongolia recorded the sharpest growth, boosting shipments 73% to 24 million tonnes.

Russia's biggest export markets were the sources of its steepest declines. Shipments to Turkey dropped 32% to 15.7 million tonnes, and deliveries to China fell 26% to 15.1 million tonnes. India was the only major market to see growth. Russian exports to India surged 63% to 9.6 million tonnes, a volume exceeding the total for all of 2025, driven by deep price discounts.

Industry leaders cite a surplus of coal at Chinese storage sites and lower consumption at Turkish power plants as primary causes for the demand drop. Rising railway costs, freight fees, and vessel insurance premiums have further squeezed exporters. Kuznetsk Basin, the country's largest mining region, reported 20 of its 93 mines and pits idle as of August. Employment in the sector declined from 103,000 to 97,300 over the year.

The drop in sales has triggered a financial crisis in the Russian coal sector. The Federal State Statistics Service reported that mining companies accumulated losses of 178.2 billion rubles, approximately $2.2 billion, between January and July. Sixty-four point five percent of these companies operated at a loss during that period.

The Russian Ministry of Energy projects total industry losses for 2026 will reach between 300 billion and 310 billion rubles, or about $3.8 billion. While BigMint's figures focus on thermal coal, the analytics platform Kpler reports that total seaborne Russian coal shipments of all grades grew by 7.25% to 135.86 million tonnes over the same nine-month window. The difference arises from varying calculation methods and product categories.