The Russian government has taken on the task of saving the country's coal companies. Thus, Russian Prime Minister Mikhail Mishustin approved measures to support the industry, one of the most affected by sanctions, and separately the enterprises of Kuzbass, where the most Russian coal is mined.
This is reported by The Moscow Times.
Last year, coal mining in Russia became one of two industries in which there were more unprofitable companies than profitable ones (53.3% by 46.7%), and total losses exceeded total profits: the negative balance amounted to 112.6 billion rubles. This year, the situation continues to deteriorate: since the beginning of the year, global coal prices have decreased by more than 20%, and more than tripled since the peaks of 2022.
Russian coal miners are caught in a "perfect storm". Europe refused their products, it turned out to be more difficult for them to deploy supplies to the East, exports are falling and in some cases are unprofitable, some companies have stopped exporting since April.
Last year, coal production in Russia decreased by 3%, while exports decreased by 6%. This year, production is growing (by 2.4% in January-April), more and more coal remains in warehouses. At the same time, production in Kuzbass is falling (by 6% year-on-year in March and April).
According to the assessment of the Ministry of Energy of the Russian Federation, there are 30 companies in the "risk zone", of which 10 have already stopped work, and five more have applied for state support. Vladimir Korotin, CEO of Russian Coal, calls the situation in the industry "the most acute crisis since the 1990s."
All enterprises of the Russian coal industry will receive a deferral in paying taxes and insurance premiums until December 1. It can be extended if necessary.
The Commission will take care of not only general support measures, but also targeted ones. The Russian Ministry of Finance and the Ministry of Energy were given a week to develop criteria for state support for specific companies.
The Russian authorities will, in fact, act as a crisis manager. She will approve plans for the financial recovery of coal companies and help those who are over-indebted to restructure their debts. The Ministry of Energy of the Russian Federation estimated the debt of coal miners at 1.2 trillion rubles since the beginning of the year, and by the end it may grow to 1.5 trillion rubles.
