Putin is facing a growing economic crisis (Image: Getty)
Russian wheat and coal exports are set to plunge this year, as the economic crisis gripping the country continues to intensify. Businesses and consumers have been hit by a double whammy of spiralling inflation and high .
‘s Central Bank has been forced to hike the key to a record high of 21%, as it desperately attempts to bring down inflation, which stands at 9.9%. Shoppers have seen food prices explode and businesses have struggled to pay back loans, with many locked into a grim flight for survival.
Russian coal miners face an uncertain future (Image: Getty)
Retail, construction and the lumber industry are just some of the sectors that are reeling from the tough economic conditions.
In a further blow to the Kremlin, exports of key commodities look set to continue their downward trend.
Russian wheat exports are predicted to decline to 47 million tonnes in 2025, down from 59 million tonnes last year – according to the shipbroking house Howe Robinson Partners.
They noted that unfavourable weather conditions have severely impacted ‘s wheat production, forcing the Kremlin to introduce export quotas to preserve domestic supplies.
Early January estimates put Russian wheat exports at 2 million tonnes, significantly lower than the almost 4 million tonnes recorded a year ago.
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Prices for Russian wheat have surged sue to the lack of supply, with buyers turning to cheaper wheat from and Australia.
Coal exports are also forecast to decline, as the industry continues to struggle from the impact of sanctions and diminishing profitability.
Howe Robinson Partners say coal exports are likely to reach only 164 million tonnes this year, marking a 6.1% year-on-year decline.
Russian coal has become less competitive than Mongolian, Indonesian and Australian cargoes, analysts say.
The coal mining industry in is facing an existential crisis as it struggles to find new clients to replace those in the West.
New data show that coal companies’ losses jumped 4.1 times between January and September in 2024 to a staggering US$1.9 billion (£1.5bn).
Furthermore, the share of loss-making companies amounted to 52% compared to 35% in the same period last year.
The decline in demand for Russian coal has forced in the Kuzbass to stop production, with over 1,000 miners receiving layoff notices.