Energy Ministry insists Russian Railways extend coal shipping agreements with mining regions to 2025 - minister

MOSCOW. Oct 18 (Interfax) - Russia's Energy Ministry is adamant that the agreements between Russian Railways (RZD) and coal mining regions to ship coal eastward be extended to 2025 and that these shipments be increased, Energy Ministry Sergei Tsivilev said at a meeting of the State Duma Budget and Taxes Committee.

"The position of the Energy Ministry is fundamental. An agreement must certainly be signed for next year with every coal mining region with which there was one for this year, with all without exception. And not only signed. The second fundamental point is that the figure must be increased," Tsivilev said.

He said the Energy Ministry is not willing to discuss raising freight rates with RZD without guaranteed amounts.

"We're not prepared to discuss raising rates if there are no shipments. At present, not only are they not growing, they are even falling. It's a very serious issue," Tsivilev said.

"We've agreed that there will be joint consultations between the Transport Ministry, RZD and the Energy Ministry next week on resolving these issues," he said.

National daily Kommersant reported at the beginning of October that RZD head Oleg Belozerov sent President Vladimir Putin a letter proposing not to sign agreements with mining regions on shipping coal eastward for export as of 2025, with the exception of the Kuznetsk Basin. However, he proposed to limit shipments of all freight, not just coal, eastward from this region to 55.3 million tonnes in 2025.

Belozerov said in the letter that freight shipments eastward generate more than 30% of RZD's revenues, but about 60% of the throughput capacity of eastern railways is used to ship coal, "which is due to agreements with key coal mining regions signed since 2020."