Russia Takes Over Global Coal Market

Russia Takes Over Global Coal Market

Russian President Vladimir Putin has announced plans to expand the country’s coal exports on the global markets as the Australians are shut out of the market by their own government.

“Last year, domestic companies exported more than 190 million tons of coal,” the president said, noting that Russia is currently the world’s third biggest exporter.

“The current market conditions provide Russia with an opportunity to expand its presence in the world’s markets, uphold that position and boost its share of exports,” Putin said as quoted by TASS.

According to the president, achieving those goals depends on solving a whole range of vital tasks, including logistics.

“Producers’ plans on production increase must be in a constant connection with development agenda of Russian Railways (RZD), as well as with sea ports investment projects,” Putin said, highlighting the need to provide a complex approach for increasing the carrying capacities of the country’s railroads.

The president called for not only the needs of coal companies to be addressed, but firms shipping bulk and liquid cargos as well. Putin also urged domestic fuel and energy corporations to enter new markets and to diversify supplies.

“Russian energy companies maintain stable positions on foreign markets. For example, the volume of natural gas exports broke the record high for two consecutive years,” he said speaking in front of the Commission on the Strategy for the Development of the Fuel and Energy Complex and Environmental Safety.

“Over the past few years, the global energy market has become noticeably more competitive, so it’s extremely important to effectively use our competitive advantages, diversify supply routes, enter and consolidate positions on new markets,” the president said.

Putin defines the Asia-Pacific region as “one of the most attractive destinations” with a growing demand for a wide range of products that is opening up great opportunities for Russian firms.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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