8 April 2018

Key factors of coal industry development, according to SUEK

‘The Russian coal industry is actively developing, and its future depends on two factors – predictable and well-balanced railway costs and refocusing exports to the Asia-Pacific region, where the main potential for demand growth lies’, Vladimir Rashevsky, CEO of Siberian Coal Energy Company (SUEK), said.

Vladimir Rashevsky took part in the Ministry of Energy’s panel.

Speaking of the first factor, he noted that last year a breakthrough was made. In late December, with the active participation of the Ministry of Energy, the government issued an order on a long-term railway tariff until 2025, with a negative inflation rate. ‘This is a very important achievement for the entire economy, but for the coal industry it will be a particularly strong incentive for further investments’, SUEK’s CEO said.

Considering the second factor, Mr Rashevsky noted that six years ago Asia-Pacific countries accounted for 30% of Russian exports, while now they account for 47%. ‘However, we need to increase deliveries to Asia at an even faster pace. We have an almost 30% share in the stagnant European market, and only 9% in the growing Asian market’, he said.

According to the representative of SUEK, the next stage of development of the Baikal-Amur Mainline and the Trans-Siberian Railway should be completed as soon as possible.

Concerning the problems of heat power engineering, Vladimir Rashevsky emphasised the importance of creating a regulatory basis for fortifying the heat supply industry.

‘This is a fundamentally underfinanced industry with the need for investment of 2.5 trillion roubles (about US$ 43 billion). The modernisation of heat power engineering and investments in heat supply are both enormous sources of economic growth for many years to come, and a factor for improving people's lives’, Mr Rashevsky said.

Source: RIA Novosti
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