Russian President Vladimir Putin has called for urgent measures to support the country’s coal companies, which face multibillion-dollar losses and risk mass bankruptcies, The Moscow Times reported on Dec. 12.
Russia’s coal industry has been severely impacted by the loss of Western markets and declining demand in "friendly" nations. Coal companies reported a combined loss of 91 billion rubles ($873 million) in the first nine months of 2024.
Russia's Energy Minister Sergey Tsivilev announced that a package of assistance for coal miners would be developed "as soon as possible."
Tsivilev also highlighted the need for a socio-economic development program for Kuzbass, Russia's key coal-producing region, which accounts for 60% of the country's hard coal and 80% of its coking coal output.
Russia’s coal exports fell by 11.4% to 112.6 million metric tons from January to July, while shipments to China — its main coal customer after Western sanctions — dropped by 8% in the first half of 2024.
Meanwhile, the Biden administration is considering new, harsher oil sanctions against Russia ahead of U.S. President-elect Donald Trump’s inauguration. Oil revenues remain a critical funding source for Russia's war effort in Ukraine.
Russia’s economic challenges extend beyond coal and oil. Sanctions have also disrupted operations at the Ozernoye zinc mine, leaving the company unable to replace key equipment. This is expected to impact global zinc supply forecasts for 2025.
Tim Zadorozhnyy
(Updated: )
