Kremlin Stock: China has unexpectedly decided to make money on Russian coal - the media

Analysts point out that Russia is one of the key coal suppliers to China, while supplying from Moscow is already seriously competing with other countries. China, which remains an important trading partner for the Russian Federation, resumed duties on coal import in the new 2024. The actions of the ally can turn into a serious problem for Russian exporters who are strongly dependent on the world's largest market for this type of fuel, writes Bloomberg.

According to journalists, duties were abolished in May 2022 to protect deliveries from risks against the background of a full -scale invasion of the Armed Forces of the Russian Federation into Ukraine. The war hit the world energy markets, but at the same time enabled the Russian Federation to increase coal supply to China, as other countries did not want to trade with the aggressor.

According to the publication, Russia has become the second key supplier of coal to China, and the long -term goal of the two countries is to reach an annual volume of deliveries of 100 million tons. In order to save these volumes in 2024, Russian traders must reduce prices for their goods. These volumes, Russian prices will have to decline.

In addition, the Chinese authorities now want to protect state mining companies from the effects of market saturation after domestic production has also grown to a historic maximum. At the same time, analysts say, monthly sales of Russian coal to China have decreased from a peak level of more than ten million tons in June 2023, since supply from the Russian Federation loses the competition of coal from other countries.

The situation for the Russian Federation is expected to become worse as duties are introduced. Meanwhile, Russia's competitors in trade with China - Australia and Indonesia, can continue to trade with Beijing freely, as they are protected from duties due to free trade with Beijing. By the way, according to The New York Times, the volume of trade between Russia and China exceeded $ 200 billion in the results of 11 months of 2023.