June 11, 2025 - The Russian coal industry has entered a deep crisis as its total losses reached RUB 79.9 billion (US$887 million) in the first quarter of 2025. More than half of the companies in the sector are operating at a loss.

Source: The Moscow Times, an independent Amsterdam-based news outlet

Details: It is noted that companies lost about RUB 26 billion (US$289 million) each month, which equals daily losses of RUB 900 million (US$10 million).

Most companies – 62% – incurred net losses amounting to RUB 126.3 billion (US$1.4 billion). Those that remained profitable (less than 40%) reduced their revenues threefold, down to RUB 46.4 billion (US$516 million).

By volume of losses, the first quarter of 2025 was the worst since such statistics have been available. The previous record was set in 2020 during the pandemic, at RUB 45 billion (US$500 million).

Vladimir Korotin, CEO of Russian Coal, stated that the current situation is the deepest crisis since the 1990s. After the EU embargo, Russian companies lost key Western markets and coal prices fell to four-year lows – down 20% compared to 2024 and threefold compared to 2022.

The largest buyer, China, reduced its imports of Russian coal last year by 13% in physical terms and 27% in monetary terms. This led to a loss of three billion dollars in foreign currency revenue.

The estimates by the analytical company TeDo show that even Far East coal shipments to China, previously the most profitable route, are now losing RUB 259 (US$2.9) per tonne as of April.

Data from the Russian Ministry of Energy indicates that 30 companies face bankruptcy risks. Meanwhile, Russia’s Federal State Statistics Service reported a record level of overdue debt in the sector – RUB 25 billion (US$278 million). In March alone, this surged by 30%, or RUB 5.8 billion (US$64 million).

Background:

• The Russian coal industry, which has fallen into a deep crisis after the embargo on fuel supplies to EU countries and the drop in global prices, is not expected to recover within the next five years.
• In April 2025, China’s imports of Russian coal dropped by 13% year-on-year, to 7.4 million tonnes.
• Western sanctions and difficulties with exports to Asia have triggered a serious crisis in Russia’s coal industry.