Russian Railways hikes tariffs for export coal

On 27 May, the Russian government approved an unusual mid-year increase in rail tariffs from 1 June. The move is intended to prop up the Russian Railway's income amid declining throughput and surging cost inflation following the start of the Russia-Ukraine conflict. Export coal was specifically targeted, with two significant coal-only discounts canceled for three months in addition to the 11% increase in tariff for most cargoes. In this report, we assess the impact this change will have on Russian export coal rail costs.