Crisis in the Russian Coal Industry: Losses Increased to $2.5 Billion

In Russia, the share of loss-making coal enterprises increased to 65.4% in January-July 2025 compared to 51.7% a year ago. This was reported by the Ukrainian Foreign Intelligence Service.

According to the FISU, the total loss of the industry before taxation amounted to about $2.5 billion, which is double the result of the entire year 2024. Companies' profits decreased by more than half – to $560 million, while losses increased 2.6 times to $3.06 billion.

'In 2024, the sector had already recorded a total loss of $1.25 billion, and the trend of deterioration continues. The decline in exports, low prices on the global market, and import duties from China and India are intensifying pressure on companies that lost more than $4.5 billion in revenues last year. Revenue may fall to $17.2 billion in 2025 from $19.6 billion the previous year, which is 41% lower than in 2022,' the intelligence service noted.

The FISU explains that coal production has been declining for the third consecutive year and may amount to 436 million tons this year compared to 439 million tons in 2024. Exports are projected at 189 million tons – the lowest level since 2020.

'Sanctions from the USA, UK, and EU have deprived Russian suppliers of key markets, while the reorientation to Asia is hindered by infrastructure limitations,' the intelligence service emphasized.

The share of loss-making coal enterprises in Russia has increased, which may impact the country's economy. The coal industry is facing declining production, falling corporate profits, and rising losses, creating serious challenges for the sector. Attempts to reorient to Asia are limited by infrastructure difficulties, complicating the situation further.