“Black gold” in the red zone: losses of Russian coal miners reached $1.2 billion
11 June 2025 18:34
The Russian coal industry ended 2024 with record financial losses. According to official data from Rosstat, the industry’s total loss amounted to 112.6 billion rubles, which is equivalent to about $1.2 billion, "Komersant Ukrainian" reports.
This means that every day coal companies in Russia lost more than $11 million, making last year one of the most unprofitable in the history of the sector.
Falling from the heights: from profits to minuses
For comparison, in 2023, the industry showed a steady profit of 374.7 billion rubles. Thus, in one year, coal companies went from strong growth to massive losses. The total income of the enterprises decreased by 68% and amounted to 140.4 billion rubles, while expenses and losses increased 2.6 times and reached 253 billion rubles.
For the first time, more than half of the enterprises in the industry – 53.3% – were unprofitable, while only 46.7% were profitable. This is an alarming signal not only for investors, but also for state regional budgets, which are heavily dependent on tax revenues of coal companies.
Russian coal industry in 2025: losses continue
The beginning of 2025 demonstrates the continuation of the negative trend. Already in January, a net loss of RUB 6.2 billion was recorded, while a year earlier in the same period companies made a profit of RUB 9.7 billion. In January-February 2025, the losses of the coal industry amounted to 19.9 billion rubles, despite the previous profit of 41.1 billion in the same period last year.
There was also an increase in the number of loss-making companies: 57.6% against 42.4% of profitable ones. This indicates systemic problems that have engulfed the industry amid foreign economic pressure and logistical constraints.
The key reasons for the collapse of the industry were:
Loss of the European market. EU sanctions on Russian coal, introduced in 2022, completely cut off the previously key export destination.
Falling global coal prices. Against the backdrop of declining global demand, the cost of a ton of thermal coal fell to $64-95, depriving Russian companies of the opportunity to trade at a profit.
Increase in logistics costs. Higher railroad delivery costs and reduced capacity have led to delays. Freight train speeds have fallen to 35 km/h in 2024, the lowest since 1991.
Declining production. In Kuzbass, the country’s main coal producing region, production fell by 7.4% in 2024. Production of thermal coal fell by 9.5%, coking coal by 2.8%.
To support the industry, the authorities abolished export duties on thermal coal and anthracite from May to December 2024. This measure was extended in 2025. In addition, the Ministry of Energy and Russian Railways agreed on separate logistics routes and preferences for eastern export destinations, primarily to China and India.
However, even under the conditions of duty abolition and government support, the industry continues to lose ground. The total number of bankruptcies among coal companies in 2024 has increased: about 9% of players have left the market, another 29% are at risk.
Social consequences: regions are losing revenue
The decline in industry profits has affected tax revenues. For example, in the Kemerovo region, a traditional coal center, taxes from the industry fell by 59%. Layoffs and downtime of enterprises lead to social tension: according to industry analysts, about 27 companies have already ceased operations, and more than 60 more are in pre-bankruptcy.
Now the Russian coal industry is in a deep crisis. Structural problems, sanctions pressure, loss of markets and internal inefficiency have led to historic losses.
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