Russian coal companies suffered losses of 408 billion rubles last year, according to Rosstat’s summary of the year. Over the year, the country produced 429 million tons of coal – thus, each ton brought an average loss of almost a thousand rubles (951 rubles).
Only one of the three coal companies (33.9%) ended the year in the black, compared to 46.7% a year ago. They earned a profit of 76.9 billion rubles over the year, which is almost half less than in 2024 (51.5%). The losses of unprofitable companies increased almost threefold to 484.9 billion rubles. This is the worst result among all industries, as is the share of unprofitable companies (66.1%).
The coal industry’s problems became evident as early as 2024, when coal production became one of the two industries with more unprofitable companies than profitable ones. Last year, sanctions and low prices were joined by a strong ruble. Almost half of the coal mined in Russia is exported, and the more than 20% increase in the ruble’s exchange rate hit the coal industry hard.
The government had to take measures to support the industry several times, a situation that the CEO of “Russian Coal”, Vladimir Korotin, described as “the most acute crisis since the 1990s”. The companies in the most difficult situation received tax deferrals, compensation for part of the railway transportation tariffs, and assistance in restructuring loans.
The worsening financial situation of coal companies is forcing banks to form additional reserves, writes the Central Bank of Russia. According to the regulator, the share of bad and hopeless loans (IV and V quality categories) in the “metals and coal” category increased from 2.8% to 7.6% over the year (only worse in transport) (The Moscow Times).
