Coal news and updates

Russia's key coal industry on verge of financial collapse

Profits in Russia's coal mining sector have plummeted by 93% in the first four months of 2024 to just RUB 14.3 billion (roughly US$161.2 million).

Source: Russian newspaper The Moscow Times, citing data from Russia's Federal State Statistics Service

Details: It is noted that less than half of the companies in the industry ended the first four months of 2024 in the black, compared to two-thirds a year ago. Additionally, their total financial result was halved to RUB 72 billion (roughly US$820 million).

The Moscow Times adds that every second company, based on official statistics, became unprofitable (52.4%), with their total losses for the first four months of 2024 reaching RUB 58 billion (roughly US$663.4 million).

Consequently, the coal miners' profit in January-April totalled only RUB 14.3 billion, down almost RUB 200 billion (roughly US$2.2 billion) from the same period a year earlier.

Russia's coal industry is one of the largest raw material industries in the country's economy, spanning over 30 monotowns and employing 650,000 people.