Jens Asbjørn Bøgen
By the end of November 2025, 3 out of 4 coal producers in Russia were deemed unprofitable.
Russia’s economy is showing mounting signs of stress as the prolonged war in Ukraine continues to drain state finances and squeeze private industry.
Western sanctions, rising prices and tighter credit have combined to leave several key sectors struggling, prompting increasingly blunt warnings from the Kremlin itself.
Not to mention the ongoing Ukrainian campaign targeting the Russian oil and gas industry.
But the Russian coal industry in particular is in a deep crisis.
Profits plummet
In March 2025, Ukrainian outlet Espreso, cited an analysis from Resurgam, stating that since mid-2024, the profits in the Russian coal sector plummeted by 65% in just a year.
And in December 2025, the BBC reported that the Russian coal industry is facing its deepest crisis in more than three decades.
Citing data from the Central Dispatching Departmen of Fuel Energy Complex, BBC wrote that especially the Russian export of coal has decreased in the past years with the domestic supply increasing.
Official figures show coal production has fallen for three consecutive years, from 445 million tonnes in 2022 to 436 million tonnes last year, while exports declined by 15% over the same period.
13% of domestic electricity
According to data from Yakovpartners, coal is used to produce about 13% of Russias domestic electricity.
As the war in Ukraine drags on, now in its fifth year, and the Ukrainians continues to target the Russian oil and gas industry, coal becomes even more important to the domestic Russian market.
Additionally, the international pricetag on coal is very low, meaning Russia will most likely focus on exporting gas and oil to get money, where coal is more likely to be used for domestic purposes.
According to the report from Yakovpartners, the energy consumption per capita in Russia is expected to increase by 0.6% until 2050.
Coal on the brink
In October, The Financial Times reported that 23 coal companies in Russia shut down, with more than 50 others at risk of bankruptcy.
The paper said the sector recorded losses of 225 billion rubles (£2.1 billion) in the first seven months of 2025.
By the end of November 2025, 74% of coal producers were unprofitable, according to the Russian news agency, Tass.
The Russian government introduced a rescue package last year, including tax holidays and subsidised rail tariffs, but analysts say structural problems linked to sanctions and war spending remain unresolved.
Sources: Espreso, Financial Times, BBC, Tass, Yakovpartners
