Russian Coal in the Era of Climate Change : Why It Will Survive and Will Not Become a Bargaining Chip in Relations with the West?

The Russian coal sector today faces challenges in the form of global decarbonization, sanctions, and difficulties in retaining market access and competitiveness. This new market environment warrants an examination of what lessons can be drawn from the past tribulations of one of Russia’s most iconic and strategically important industries. This book analyzes the Russian coal industry developments in historical and political contexts, including those of energy transition. The key tenets of contemporary dialogue between Russia and those who advocate for a speedy energy transition to phase out coal are presented. The book addresses the question of the coal industry as a sacrifice for the sake of Russia’s rapprochement with the West. The contribution of this book, therefore, is filling the gap between two large research inquiries – climate change mitigation and energy transition on the one hand, and the existing large coal industry of a given country on the other. Contents Abbreviations List of Figures 1 Introduction About This Book Structure and Summary of Chapters Review of Existing Literature Authors References 2 Coal in the Soviet Economy Loss of Leadership and New Priorities of the Coal Industry The Growth of Social Tensions and Collapse of the Soviet Economic Model Who Is Behind the Changes? Conclusions References 3 Reforms in the Russian Coal Sector Why Reforms? From Peak Production to Decline Rosugol as a Reformer: Mission Unfulfilled From Trust Management to the Market Relations Private and Profitable, but Social Challenges Remain Conclusions References 4 Regional Trends Within the Russian Coal Sector: Cases of Komi, Kuzbass, and Sakhalin Komi, Vorkuta History of Coal Industry Development in Komi Opening the Pechora Basin and Building Vorkuta as a GULAG Camp The Second World War Makes Vorkuta Strategically Important “Our Basins Do Not Compete with Each Other” Komi Coal Industry During Late Socialism of the Late 1980s The Declining Soviet Coal Legacy While Komi Diversifies Its Economy The Role of Coal in Komi Regional Economy On the Way to Dirigisme in Vorkuta: Company Town, Mono Town, and Arctic Town The Case of Vorkutaugol The Rise of an Entrepreneur in a New Era Regional Problems and Perspectives Stable Coal Production and Unstable Demography Conclusions Kuzbass The Long Path of Big Development More Than Just the Energy Source One Way One Railway Coal Titans of Kuzbass Mikhail Kislyuk Aman Tuleyev Sergey Tsivilev Conclusions Sakhalin The History Revealed The Case of the East Mining Company The New Era Capital Owners The Role of Coal in the Economy of the Region The Window of Opportunities References 5 Modern Coal Companies of Russia The Links of One Chain Is the Russian Coal Business Effective? The Task for Managers The Case of ELSI: 2 Years and 12 Hours Conclusions References 6 Interconnections Between International Coal and Natural Gas Markets General Introduction to International Coal Market Volumetric Characteristics of the International Coal Market Major Coal Exporters: Assessing the Competitors Major Coal Importers: Assessing Actual and Potential Target Markets International Coal Trade Flows Coal Pricing Interconnections Between Coal and Natural Gas Markets from the Standpoint of Interfuel Competition Coal Versus Natural Gas: A Case for Interfuel Competition? European Union China General Comparative Remarks Conclusions References 7 Russian Coal Sector in the Age of Climate Change History of Russia’s Ecologic Policy Key Trends Related to the Decisions of the UN COP26 Climate Change Conference in Glasgow Reducing the Use of Coal in the Electric Power Industry Refusal of Subsidies to the Fossil Fuel Sector Moving to Net Zero Overcoming Energy Poverty in the Context of Climate Change Issues The Impact of COP26 Decisions on the Prospects of the Coal Industry A Tangle of Contradictions at the UN Climate Change Conference COP27 in Sharm el-Sheikh Insufficiently Active Revision of Climate Commitments by Participating Countries The Aggravation of the Issue of Historical Justice in Relation to the Countries of the Global North and the Global South Tense Geopolitical Context Overall Assessment of COP27’s Progress Compared to COP26 The Climate Agenda in the Russian Context The Coal Club and its Position on COP26 Decisions Russia’s Position at the Glasgow Conference Russia’s Position at the Sharm el-Sheikh Conference Conclusions References 8 Conclusion Annex 1: Glossary Annex 2: Personalities Index