Russian Coal Industry Suffers Record Losses
1- 20.08.2025, 17:03
- 2,858
Sanctions and war continue to drain the aggressor's economy.
Russia's coal industry is going through a severe crisis amid sanctions and war, losing markets and racking up debts. According to the Russian Ministry of Energy, the industry's losses in 2024 could reach 350 billion rubles, writes Daily Express (translated by Charter97.org).
The main blow has come on exports. Russia has lost European markets and is forced to refocus on Asia, where it faces stiff competition from Australia, Indonesia and South Africa. An additional blow was a 7.8% drop in coal purchases by China, Moscow's key partner, last year.
The sanctions have restricted access to Western equipment, and mining companies are having to dismantle some equipment to keep other plants running. At the same time, the coal industry remains a significant employer: about 150,000 people work in mines and surface mines, and another half a million are employed in related sectors - from energy to transportation.
The situation is no better in the automotive industry. High inflation (about 9%) and the Central Bank's key rate of 18% made loans unaffordable for the population, which sharply reduced demand. As a result, car production in Russia fell by 28% in the first six months of the year, and truck production fell by 40%.
To cut costs, the largest enterprises - KamAZ, AvtoVAZ, GAZ, as well as tractor plants in Chelyabinsk and St. Petersburg - have switched their employees to a four-day week. This means a loss of about 20% of income for employees and a further drop in consumer demand.
The economic crisis in key industries is increasing pressure on the Russian labor market and living standards.
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