Russia's coal mining industry is moving eastward, bringing operations closer to eastern ports and key Asian markets, pointed out Daniil Bychkov, head of the Coal Strategy Department at Siberian Coal Energy Company (SUEK), during a meeting held on March 19.

Speaking at the 3rd China Coal Import International Summit 2026 hosted by Fenwei Digital Information Technology in Guangzhou, Guangdong, Bychkov shared a detailed analysis on current situations and market outlook of Russian thermal coal industry.

He revealed that raw coal production in the key export-oriented regions of the Far East, including Yakutia, Sakhalin, Khabarovsk and Zabaykalsk regions, grew by 51 million tonnes in 2025 compared to the 2018 levels.

Russian coal exports to the Atlantic have declined by approximately 35% since 2022, primarily due to the closure of traditional EU markets and the need to offer additional discounts to other markets, he noted.

The disruption in trade flows also cut off Russian suppliers from key customers in the MENA region. Notably, Morocco and Israel, which together imported around 10 million tonnes of Russian coal in 2021, are no longer active buyers.

While China became a key market in 2022, Russian producers have also managed to develop other Asian destinations to diversify their export portfolio. Beyond China, South Korea accounts for more than 80% of the demand for Russian coal within premium Asian markets. The country also diversified its export structure by increasing supplies to Vietnam, Indonesia, Malaysia and Sri Lanka.

Bychkov underscored that prices of Russian coal have been more resilient in the Eastern markets, as discounts in the East had increased less compared to the West due to a higher number of clients accepting coal from Russia. However, in Japan and in Taiwan, supplies from Australia and South Africa have replaced Russian coal.

Regarding the country's biggest coal mining hub Kuzbass, Bychkov noted that it is the most remote from ports among all coal exporting regions and has the highest logistics cost component. Due to low prices, a significant strengthening of the ruble in 2025 and an increase in railway tariffs, local producers are reducing production volumes.

However, he stated that the expansion of Eastern Polygon's capacity could be one of the key drivers for Kuzbass's exports in eastern direction, and projected that further development of the rail network would add 25 million tonnes of new capacity by 2028.

Furthermore, an improvement in the macro environment will boost the profitability of Kuzbass-based miners. Analysts expect prices in both Eastern and Western markets to rebound, while the ruble is expected to weaken, he said.

As a conclusion, Bychkov pointed out that growth in Russian thermal coal exports may be supported by the recovery of production in Kuzbass, as well as the further advancement of current and the launch of new projects in the eastern regions of Russia.