Coal collapse in Russia: most companies are operating in the red

The crisis in the coal sector in Russia is deepening – most companies are operating in the red and production is falling. Data shows that 74% of enterprises are already making losses, and 23 mines have completely stopped.

This was reported by the Center for Countering Disinformation.

The industry’s financial losses have risen to 263 billion rubles ($3.33 billion) and could reach 350 billion by the end of the year. After the start of the full-scale war, Russia lost its main export markets – especially the EU countries, which refused Russian coal.

Russia is trying to sell coal to Asia, but logistics are too expensive and prices are low. As a result, companies are piling up debt, sharply reducing production, and showing their worst financial results in years.

Economists explain that the crisis arose due to war, sanctions and the loss of foreign markets. Even state subsidies do not help – the problems are getting deeper, and the Russian economy continues to lose support in key industries.

As previously reported, the non-food retail sector in Russia continues to collapse.

Recall that in September, Russian companies spent a record 39% of their profits on interest payments on credit obligations , which indicates serious financial pressure on business.

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