Having agreed on an implementation of the 2020 Greenhouse Gas Emission Reduction Target, ministers went on to support a new version of the 20-year spending plan for the coal industry.

The scheme is reportedly worth 250 billion Roubles ($A7.4 billion) of state funding reserved mostly for transport infrastructure.

Coal currently makes up 16% of Russia’s energy portfolio. Last year coal production showed a loss of 22 billion roubles.

The Russian Minister for Energy Alexander Novak told a government meeting that the country’s coal industry is facing stagnation with cheaper natural gas pushing coal out of power generation and declining international prices.

He also said that energy efficiency targets and investment in renewables also posed a threat to the industry.

The development plan sees Russia increase production to between 410 and 480 million tons by 2030. Exports are also predicted to increase to 70Mt.

According to the plan, the focus of production will shift from Siberia in the south-west, to less developed eastern regions in a bid to increase the share of the existing Asia-Pacific market from 6-15%.

Domestic consumption is predicted to stabilise but coal’s presence in the energy mix is due to rise by 30% from 91-102Mt a year.

The plan does involve the building of coal-fired power plants, but the majority of the increases will come from imports from neighbouring Kazakhstan.

Russia is the sixth largest coal producer in the world and third largest exporter.

It is considered an industry ‘hot spot’ along with China, Australia, Indonesia and other coal-loving countries.