South Korea has sharply reduced imports of Russian coal, shifting to Colombian supplies due to lower prices and the absence of sanctions-related risks, The Moscow Times reported.
“The structure of demand began to change in the fall,” the outlet wrote. “Russian coal producers, who led the Korean market in the summer with exports of 3.76 million tons, faced new competition from Colombia. Colombian suppliers often offer better deals, covering part of the freight costs or providing discounts to strengthen their positions, while the lack of sanctions gives them an additional advantage.”
In September, Russia’s coal exports to South Korea dropped by 14% from August, totaling 2.7 million tons.
“The decline became even more noticeable by mid-October. During the first week of the month, Colombia nearly doubled its coal shipments to 1.3 million tons, of which 310,000 tons went to Seoul,” the publication noted. “From Oct. 1 to 20, Russia supplied 1.1 million tons of coal to South Korea, signaling another decline by the end of the month.”
Russian coal producers are trying to maintain their foothold in the South Korean market, where prices remain relatively high. However, Russian analysts say it will be impossible to return to the levels seen in the summer.
“Korean companies are already close to reaching the volumes recommended by the government as the ‘internal limit’ for Russian coal purchases,” the report said, citing Russian experts. “Although there are no formal restrictions, state-owned companies and traders follow these guidelines when planning their imports.”
Russia now faces strong competition from Australia and Indonesia, both key players in South Korea’s energy market.
In September, Australia boosted its coal exports to Seoul by 39.2% to 3.64 million tons, while Indonesia reduced its shipments by 20.5% to 2.86 million tons.
The combined losses of Russia’s coal industry could reach between 300 and 350 billion rubles ($3.8–4.4 billion) in 2025, compared to losses of 112.6 billion rubles (about $1.4 billion) last year.
Earlier, Ukraine’s Foreign Intelligence Service reported that Russia’s coal sector remains in deep crisis.
