Deputy Head of the Russian Ministry of Energy, Dmitry Islamov, has announced that 51 coal enterprises across Russia are either shut down or facing imminent closure.
Referring to these companies, which include both mines and open pits, Islamov stated that they are in a “red zone,” indicating their critical status of being halted or on the verge of stopping operations.
He further highlighted the deteriorating state of the coal industry, noting that losses for the sector amounted to 112.6 billion rubles last year.
According to the ministry`s latest data, as of January 1, 2024, a total of 179 coal mining enterprises were operating in Russia.
In response to the challenges, Prime Minister Mikhail Mishustin approved a package of support measures in late May. These initiatives include allowing coal companies to defer payments for mineral extraction tax (NDPI) and insurance contributions until December 1. Additionally, companies burdened by high debt will have the opportunity to restructure their credit obligations.
Targeted assistance is also available, such as a 12.8% compensation on coal export tariffs for Siberian enterprises shipping to the northwest and south. Certain companies may also receive subsidies to help cover a portion of their logistics costs for exporting coal over long distances.
