Russia's coal industry plunges into crisis: 74% of companies are unprofitable, 23% have stopped production – intelligence

In the third quarter of 2025, systemic imbalances deepened in Russia’s coal industry, which has already led the sector into a zone of sustained crisis. According to available data, 74% of companies are operating at a loss, and 23% have completely stopped production, UNN reports with reference to the Foreign Intelligence Service.

DetailsAccording to intelligence data, the total loss of the industry reached $3.32 billion and, according to estimates, could grow to $4.42 billion by the end of the year. The current dynamics indicate that the situation is unstable, but the key deterioration is yet to come.

Coal production has been declining for the third year in a row. Last year, the sector recorded $1.41 billion in losses and accounts payable of about $15.1 billion. The share of unprofitable enterprises was 53%. By the end of 2025, the debt burden could increase to approximately $18.9 billion, which complicates access to financing and increases the risks of chain bankruptcies.

The worsening prospects are due to the loss of traditional sales markets after Russia’s full-scale invasion of Ukraine, a sharp drop in export prices – from $148-192 per ton in 2022 to $72-106 per ton in 2024 – and restrictions on eastern infrastructure, which blocks a rapid reorientation to the Asian direction.

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Crisis phenomena are also deepening among private producers. Mechel reduced production by 55% in Q3 2025 compared to last year, to 1.28 million tons, and by 38% over nine months. The company’s net loss in the first half of the year increased 2.4 times, to $5.69 billion – the highest level since 2015.

Companies with weaker financial positions may default within the next 6-12 months. At the same time, some large private players risk facing forced restructuring or actual transfer of control to the state. The temporary support mechanisms introduced by the government are not effective, and in 2026 the share of insolvent enterprises will only increase, the intelligence service summarized.

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