More than 50 coal companies in Russia are on the brink or have closed down

More than fifty coal enterprises in RUSSIA have closed or may soon cease operations, the Ministry of Energy warned. The agency predicted losses of 300-350 billion rubles. In May, the Cabinet approved measures to support the industry

The losses of the Russian coal industry in 2024 amounted to 112.6 billion rubles, the situation continues to worsen, said Deputy Minister of Energy Dmitry Islamov.

“In the so-called red zone, these are enterprises that have been stopped or are on the verge of stopping; today there are 51 enterprises, that is, mines and open pits,” he said ( quoted by RIA Novosti).

Deputy DIRECTOR of the Ministry of Energy Department Dmitry Lopatin admitted that by the end of the current year, the net loss of Russian coal industry companies could reach 300–350 billion rubles. In the first five months, it amounted to about 112 billion rubles.

There are currently about 180 coal companies operating in Russia. The most difficult situation is faced by medium and small enterprises producing thermal coal, which have faced a sharp reduction in EXPORT revenue, the NKR agency reported. After the EU refused Russian coal, supplies were reoriented to CHINA (40-45% of exports in 2023-2024), India (10-12%) and Turkey (10-15%), but in new markets, coal miners are forced to "re-conquer a place in the sun and play with prices," analysts noted.

The National Credit Committee admitted that due to high financial pressure on the industry in the coming years, small companies will transfer to larger structures. At the same time, Ilya Zharsky, managing partner of the Veta expert group, noted that market consolidation is possible with “relatively inexpensive” loans required to carry out transactions.

In May, the government approved measures to support the coal industry, including tax, insurance premium and fee deferrals until December 1, 2025, financial recovery programs, and debt restructuring for companies experiencing serious debt burdens. Islamov reported that as of early July, 73 companies had applied for assistance.

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