The Russian government has approved a package of measures to support the coal industry, developed jointly with market participants and federal executive authorities.
Measures to support the coal industry
As it became known, Prime Minister Mikhail Mishustin signed a decree providing for the provision by Russian Railways (RZD) of a discount in the amount of 12.8% on export transportation of coal to western and southern ports from May 1 to December 31, 2025.
Discounts and odds
- The discount of 12.8% on coal export shipments to western and southern ports will be valid from May 1 to December 31, 2025.
- Resumption of the effect of the reduction coefficients to the tariff of 0.4 and 0.895 for the same period.
Background and context
Previously, until June 2022, a reduction factor of 0.4 (i.e. a discount of 60%) was applied when transporting coal over a distance of over 3,300 km, and 0.895 (a discount of 10.5%) was applied when sending for export.
Compensation for lost income of Russian Railways
To compensate for the loss of income of Russian Railways, it is planned to allocate subsidies from the federal budget.
The importance of support measures
The measures taken are aimed at supporting the coal industry and ensuring stable operation of the industry in the context of changing market conditions.
Prospects and forecasts
Experts expect that these measures will allow coal companies to increase coal exports and maintain production capacity utilization.
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