Russian coal companies ended the past year with record losses, totaling 408 billion rubles (approximately $5.15 billion). According to official data, in 2025, Russia produced 429 million tons of coal, but each ton resulted in an average loss of 951 rubles.
This is reported by Finway
Crisis Factors in Russia’s Coal Industry
Only one-third of coal companies finished the year in profit, representing 33.9% compared to 46.7% the previous year. Their total profit amounted to 76.9 billion rubles, nearly half of what it was in 2024 (51.5%). Meanwhile, the losses of companies operating at a loss nearly tripled to 484.9 billion rubles, marking the worst performance among all sectors of the Russian economy. The share of loss-making companies also reached a record 66.1%.
Experts cite sanctions, falling global coal prices, and the strengthening of the Russian ruble as the causes of the decline, which particularly hit exporters hard. Almost half of the coal produced is exported, and the ruble’s strengthening by more than 20% significantly reduced the industry’s revenues from foreign sales.
Government Support and Market Consequences
In response to the crisis, the Russian government was forced to implement support measures several times. In particular, companies were granted tax payment deferrals, partial compensation for railway transportation tariffs, and assistance in restructuring loans. The CEO of “Russian Coal,” Vladimir Korotin, described the situation as “the most acute crisis since the 1990s.”
“The situation which the CEO of ‘Russian Coal,’ Vladimir Korotin, described as ‘the most acute crisis since the 1990s.'”
As of November last year, according to the Russian Ministry of Energy, approximately 74% of the country’s coal companies were operating at a loss, and 23 enterprises had already suspended operations. One of the largest mining and metallurgical holdings, “Mechel,” reported the largest reduction in coal production in recent years.
It was previously reported that from January to July 2025, the industry’s losses reached 225 billion rubles (approximately $2.8 billion), and in the first half of the year, 66% of companies were loss-making with a total loss of 185.2 billion rubles, which translates to over 1 billion rubles ($12.5 million) daily. The Russian Ministry of Finance estimated the necessary state support for the industry at 63 billion rubles ($802.58 million) in the form of tax deferrals until the end of November.
The crisis in Russia’s coal industry deepened due to the loss of the European sales market and significant coal accumulation in port warehouses. Nearly 50 million tons of coal are stored in warehouses, accounting for about a quarter of the total export volume for 2024. By the end of the first quarter of 2025, the total loss for the industry reached 79.9 billion rubles, with average daily losses exceeding 900 million rubles ($11.44 million).