Russia May Face Miners' Riots

Coal exports from the country have almost stopped.

The miners' riots of the 1990s may return to Russia amid the collapse of the coal industry, which directly employs 150,000 people and, when related industries are taken into account, over half a million, finanz writes.

After the introduction of EU sanctions, which banned not only direct deliveries to the EU but also insurance of carrier ships to third countries, Russian coal exports have virtually come to a halt.

SUEK, the country's largest coal company, which operates coal fields with total reserves of 7.2 billion tonnes, has not been able to ship a single batch to foreign markets since mid-August, sources familiar with the situation told Bloomberg.

Insurers are refusing to deal with Russian coal because it is now an illegal operation, said Mike Salthouse, chairman of the sanctions committee of the International Group of P& I Clubs. Companies are looking for other ways to export, but they will be costly and take time, Bloomberg sources say.

Russia's largest coal basin, Kuzbass, is already halting coal mines as it is difficult to find buyers in Asia, even at a 45-50% discount per tonne of coal.

The authorities see the risks of bankruptcy in the coal industry, that was the conclusion of the State Council Committee that met on August 10, Izvestia informs referring to the minutes of the meeting.

As an emergency measure, the government is preparing tax incentives worth 4 billion rubles.