With 173 billion short tons, Russia holds the world's second largest recoverable coal reserves, behind the United States, which holds roughly 274 billion short tons. Russia produced 321 million short tons in 2006 (roughly a quarter of U.S. coal production), making it the fifth largest in the world. The country consumed roughly 260 million short tons, leaving 61 million short tons for export. Updated statistics are available from the EIA Country Energy Profiles.

According to the government's energy strategy, Russia should produce between 441 and 496 million short tons by 2020. After restructuring in the last couple years, almost 80 percent of domestic coal production comes from independent producers. Russian coal production began a three-year upswing in 1999. After a slight decline earlier in the decade, production has increased markedly in recent years. The Russian government’s strategy to increase coal production and build more coal-fired plants will help reduce demand for natural gas, thus allowing for more natural gas exports.

There is currently a proposal to reduce the excise duty on coal production by 50 percent. This would also involve a tax system with diversified rates that would help replace gas by coal at power stations and reduce gas consumption.