Russian coal companies suffered a 408 billion ruble loss last year, according to Rosstat's annual results. The country mined 429 million tons of coal during the year, meaning each ton generated an average loss of almost a thousand rubles (951 rubles).
Only one in three coal companies (33.9%) turned a profit, compared to 46.7% a year ago. They earned 76.9 billion rubles in profit for the year, almost half the 2024 target (51.5%). Losses at unprofitable companies nearly tripled to 484.9 billion. This is the worst result among all industries, as is the share of unprofitable companies (66.1%).
Coal miners' problems became evident back in 2024, when coal mining became one of two industries with more unprofitable companies than profitable ones. Last year, sanctions and low prices were compounded by the strong ruble. Almost half of the coal mined in Russia is exported, and the ruble's appreciation of over 20% has crushed the coal industry.
The government has been forced to take several measures to support the industry, which Vladimir Korotin, CEO of Russian Coal, called "the most acute crisis since the 1990s." Companies in the most dire straits received tax deferrals, partial compensation for rail freight rates, and assistance in loan restructuring.
According to the Central Bank, in the fourth quarter, banks issued 0.7 trillion rubles in loans to coal and metals companies, more only to industrial companies. In the sectoral structure of banks' corporate loan portfolios, "metals and coal" (which includes companies primarily engaged in raw material extraction) ranked fourth, with 10.3 trillion rubles at the end of 2025.
These loans quickly deteriorate. The deteriorating financial situation of coal companies is forcing banks to build up additional reserves, the Central Bank notes. Over the year, the share of bad and non-performing loans (quality categories IV and V) in the "metals and coal" category increased from 2.8% to 7.6% (worse only in transportation; the same figure in factoring). Meanwhile, problem loans to coal and metal producers were even higher: 1.3 trillion rubles, or a third of all banks' problem debts (1.4% of the portfolio).
Banks are actively restructuring these loans: according to the Central Bank, they grew from 1.5 to 2.1 trillion rubles over the year, or 2.2% of the banking system's entire corporate loan portfolio. The most serious bad debts are being removed from balance sheets. The regulator explains the 0.2 trillion ruble decrease in category IV-V loans in the fourth quarter by the fact that banks "sold some problem assets, primarily coal companies, at a discount."
Last summer, VTB President Andrey Kostin called for industry reform: "Let's be honest, why do we need to produce so much coal? <...> The mine method is ineffective." This method accounts for 22% of coal production in Russia, according to the Central Dispatch Department of the Fuel and Energy Complex. Last year, coal production fell by 1.7%, despite a 4% increase in exports.
Regions where coal production plays a significant role are also suffering. Kemerovo Oblast, which accounts for almost half of production, was one of eight regions to reduce spending last year and the only one where the reduction exceeded 10% (14.2%). Its budget deficit amounts to 27% of revenues (excluding transfers) – the third-worst region by this indicator. Only Vologda and Arkhangelsk Oblasts have a worse situation.
Only one in three coal companies (33.9%) turned a profit, compared to 46.7% a year ago. They earned 76.9 billion rubles in profit for the year, almost half the 2024 target (51.5%). Losses at unprofitable companies nearly tripled to 484.9 billion. This is the worst result among all industries, as is the share of unprofitable companies (66.1%).
Coal miners' problems became evident back in 2024, when coal mining became one of two industries with more unprofitable companies than profitable ones. Last year, sanctions and low prices were compounded by the strong ruble. Almost half of the coal mined in Russia is exported, and the ruble's appreciation of over 20% has crushed the coal industry.
The government has been forced to take several measures to support the industry, which Vladimir Korotin, CEO of Russian Coal, called "the most acute crisis since the 1990s." Companies in the most dire straits received tax deferrals, partial compensation for rail freight rates, and assistance in loan restructuring.
According to the Central Bank, in the fourth quarter, banks issued 0.7 trillion rubles in loans to coal and metals companies, more only to industrial companies. In the sectoral structure of banks' corporate loan portfolios, "metals and coal" (which includes companies primarily engaged in raw material extraction) ranked fourth, with 10.3 trillion rubles at the end of 2025.
These loans quickly deteriorate. The deteriorating financial situation of coal companies is forcing banks to build up additional reserves, the Central Bank notes. Over the year, the share of bad and non-performing loans (quality categories IV and V) in the "metals and coal" category increased from 2.8% to 7.6% (worse only in transportation; the same figure in factoring). Meanwhile, problem loans to coal and metal producers were even higher: 1.3 trillion rubles, or a third of all banks' problem debts (1.4% of the portfolio).
Banks are actively restructuring these loans: according to the Central Bank, they grew from 1.5 to 2.1 trillion rubles over the year, or 2.2% of the banking system's entire corporate loan portfolio. The most serious bad debts are being removed from balance sheets. The regulator explains the 0.2 trillion ruble decrease in category IV-V loans in the fourth quarter by the fact that banks "sold some problem assets, primarily coal companies, at a discount."
Last summer, VTB President Andrey Kostin called for industry reform: "Let's be honest, why do we need to produce so much coal? <...> The mine method is ineffective." This method accounts for 22% of coal production in Russia, according to the Central Dispatch Department of the Fuel and Energy Complex. Last year, coal production fell by 1.7%, despite a 4% increase in exports.
Regions where coal production plays a significant role are also suffering. Kemerovo Oblast, which accounts for almost half of production, was one of eight regions to reduce spending last year and the only one where the reduction exceeded 10% (14.2%). Its budget deficit amounts to 27% of revenues (excluding transfers) – the third-worst region by this indicator. Only Vologda and Arkhangelsk Oblasts have a worse situation.
