But January 2003 production was up 18.4% compared with the same period of 2002 and totalled some 25 million tons.

The production decrease occurred in five of the seven main coal producing regions, with the most dramatic reduction taking place in the East Siberian region – at 16 million of tons. Growth was achieved at West Siberia and Far East – both at 1.5 million tons.

Supply of Russian coal amounted to 234 million tons, down on all market segments except coal export. Exports rose to 51 million tons, 9 million tons up in comparison with 2001. Coal imports decreased by 5.8 million tons, totalling 20.5 million tons.

In 2002, the total freight flow of foreign trade through Russian ports amounted to 330 million tons, including 27 million tons of export coal. Throughput at the main ports was 13.5 million via Vostochny, 5.7 million via Murmansk, 2.2 million via Tuapse.

Because of limited handling capacities of Russian ports, some 13.2 million tons were exported through ports of neighbouring countries, Ukraine and Baltic countries in particular.

One of the root causes of the problems facing Russia’s national coal industry is in the disbalance of pricing between coal and gas. Internal gas prices are currently 1,5 times lower than coal, but export gas prices are three times more than internal prices.

Coal’s share in the fuel balance is only 20%, far less than in most developed countries. Russia still doesn’t have any economic instruments to force energy generators to use more coal.

The process of privatisation of the Russian coal industry meanwhile continues. In 2003 the government plans to sell shares in coal mining companies, including 38.41% of the shares of Vorkutaugol, 13.72% of the shares of Vostsibugol, 39.3% of the shares of Dalvostokugol, 11.6% of the shares of Primorskugol, 60.5% of the shares of Inta Coal Company, 40.45% of the shares of Vakhrushevugol.

In 2003 the national coal industry plans to produce about 269 million tons of raw coal, up 6.2% in comparison with 2002.