Losses of Russian coal companies reach 4 bln USD in 2025 YTD

In January-August 2025, net losses of Russian coal companies totaled 4 billion USD compared to losses of 1.2 billion USD in the same period a year earlier. Thus, losses for the first 9 months of 2025 exceeded almost 3 times overall losses in 2024, which totaled 1.44 billion USD. The share of loss-making companies also increased to 67% against 52%.

According to the financial performance indicators of Russian coal companies, their combined losses in 2025 may reach 5 billion USD if the ruble exchange rate and interest rates remain unchanged. Given the required adjustments for some companies that submitted incorrect profit/loss statistics, the figure may exceed 5 billion USD.

The Russian coal industry has lost almost 30 billion USD since 2022, resulting from sanctions pressure, as well as rail tariff and fiscal measures within the country. The bulk of the losses in amount of 18 billion USD are related to the restrictions imposed on Russian companies, while another 12 billion USD were withdrawn from the industry due to the growth of railway tariff and fiscal burden.

One of the key challenges that affects the coal industry is the high level of debt. Currently, the volume of loans issued amounts to 15 billion USD and may spike to 17.5-18.8 billion USD by the end of 2025.

Therefore, in 2025, the downward momentum in the coal industry is intensifying amid falling prices in the global market, an increase in production costs and ruble appreciation. Additional factors that continue to negatively affect the financial results of coal producers are high railroad tariffs and limited transportation capacity of railroad infrastructure in eastbound direction.

Moreover, Western sanctions significantly reduced the number of countries importing coal, thereby exacerbating the decline in total Russian supplies as there are no alternative sales markets.

Source: CCA Analysis