Russia's Coal Industry Reports Major Losses in 2024
(MENAFN) Russia's coal industry has become the nation's only major sector to report significant losses in 2024, marking a sharp downturn in both financial performance and output, local media outlets revealed on Tuesday.
Speaking to media, Dmitry Islamov, Russia's Deputy Minister of Energy, disclosed that the coal sector suffered a staggering 112 billion ruble (approximately 1.4 billion U.S. dollars) loss in 2024, with outstanding debts totaling 1.2 trillion rubles (15.3 billion dollars). More than half of the coal companies—about 53 percent—are operating at a deficit.
Islamov pointed to a mix of global and national challenges as the key drivers of the crisis. “International coal prices have nearly halved since the beginning of the year. This, coupled with a stronger ruble and extended logistics routes, has severely impacted profitability,” he explained.
To counter the industry’s struggles, the Russian government is exploring potential financial aid for 73 coal mining companies. Islamov noted that the support could span different periods, including six months to a full year.
Russia's coal output fell to 438 million tonnes in 2024, a reduction of 5 million tonnes compared to 2023.
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