Russia's Energy Ministry proposes that RZD sign agreements to ship coal to Northwest, South regions in 2025

MOSCOW. Oct 29 (Interfax) - Russia's Energy Ministry considers it important that Russian Railways (RZD) conclude an agreement for 2025 to ship coal products eastward with all coal-mining regions that have these agreements for 2024, and proposes to set new agreements for the Northwest and South regions, the Energy Ministry said on social media after a meeting on the Energy Strategy 2050 coal section.

"The Energy Ministry considers it extremely important to sign agreements for 2025, so that coal companies could plan operations for the following year," Energy Minister Sergei Tsivilev said.

The Energy Ministry has insisted upon prolonging the agreements between RZD and coal-mining regions until 2025, as well as upon boosting coal transportation eastward. The ministry is not ready to discuss with RZD an increase in tariffs to transport without guaranteed volumes, Tsivilev told Russia's State Duma in mid-October.

The Kommersant publication previously reported that RZD CEO Oleg Belozerov in early October sent a letter to President Vladimir Putin, in which Belozerov proposed not to conclude agreements on coal exports eastward with mining regions, excluding Kuzbass. However, limiting the export of all cargo, not just coal, from the region eastward to 55.3 million tonnes in 2025, has be proposed.

RZD said that over 30% of the company's revenue comes from cargo transportation eastward, and around 60% of capacity in the Eastern area is for transporting coal "owing to agreements concluded with key coal-mining regions since 2020."