Coal Crisis Hits the Rails of the russian Railways

The deepening crisis in russia’s coal industry continues to hit related sectors of the rf’s economy. Railway transportation was particularly affected by this – in the first quarter of 2025, the volume of export coal transported by russian railways to the ports of the Azov, Black and Baltic seas decreased significantly.

The main reason for this decline is the coal companies’ failing to meet the declared volumes of supplies. The share of coal not provided for transportation reached 30 % of the previously ordered. As a result, the railway monopoly is forced to maintain extra railway wagons that are idle.

As of April 2025, the excess railway wagon fleet in the rf has already reached 295,000 units. This puts additional strain on the infrastructure and increases maintenance costs. This situation indicates serious imbalances in the domestic supply chain.

The Foreign Intelligence Service of Ukraine forecasts that sanctions and problems with exports to traditionally highly profitable markets will continue to complicate the industry’s functioning. A deepening crisis, in turn, could bring down not only the coal industry but the entire transportation system of the rf.