Russia’s coal industry is facing a deepening crisis, with 74% of coal companies operating at a loss.
According to Ukrinform, this was reported on Telegram by the Center for Countering Disinformation (CCD) under Ukraine’s National Security and Defense Council.
“74% of Russian coal companies, according to the Ministry of Energy, are operating at a loss, while 23 enterprises have already shut down. The sector’s cumulative losses have reached RUB 263 billion ($3.33 billion) and may rise to RUB 350 billion ($4.43 billion) by year-end,” the report reads.
The report noted that since the start of the full-scale war, Russia has lost key export markets, particularly the European Union. Reorientation toward Asia has proven unprofitable due to high logistics costs and low prices. As a result, debts have surged and production has declined. Even major companies in the sector are showing output at decade-long lows and record losses.
The Center emphasized that the crisis in the coal industry is a direct consequence of the war, sanctions, and the loss of external markets. Despite targeted subsidies, systemic problems are only worsening, leaving the Russian economy increasingly weakened in its core industries.
The Center also recalled that in May 2025, Vladimir Putin assured that “support for the coal industry will be provided,” and in autumn spoke of its “great prospects.” However, the situation has only deteriorated since, underscoring the populist nature of such statements, which create merely an illusion of control.
As Ukrinform previously reported, Russian companies in September devoted a record 39% of profits to interest payments on loans. Due to the war in Ukraine, the stagnation of the Russian economy will only intensify.
