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Significance

The reorientation of sales from Europe to Asia following Western sanctions has increased costs and driven down profits. According to the state statistics agency Rosstat, only 48% of coal companies have been profitable this year compared to 64% in 2023.

Impacts

Crude oil sales will continue to account for the bulk of Russian hydrocarbon exports.

Gas exports are unlikely ever to recover to pre-war levels.

China and India will continue to rely heavily on coal as a primary energy source.

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