Russian coal industry losses hit $2.5 billion in Jan-Jul 2026

Russian coal industry losses remained substantial in Jan-Jul 2026 as high rail tariffs, interest rates and rising production costs continued to pressure producers.

Net losses of Russian coal companies in January-July 2026 amounted to 2.5 bln USD, according to preliminary data, compared to 2.3 bln USD for the same period last year. Thus, the loss edged down by 0.2 bln USD y-o-y. The share of unprofitable companies reached 69%, flat y-o-y. However, 65 enterprises are on the verge of halting operations, of which 20 have already stopped mining.

The Ministry of Energy adjusted the coal industry’s losses in 2026 down to 3.7–3.9 bln USD, which is 1.5 times lower than previous forecasts due to rising coal prices and changes in exchange rates.

Nevertheless, the ruble remains strong, and interest rates remain high, putting pressure on coal producers and exporters. Moreover, coal companies’ performance remains disappointing due to several negative factors, including transportation costs, as Russian Railways (RZD) raises tariffs: in 2025, the increase spiked 13.8% (despite official inflation of 5.6%), and in March 2026, a 1% surcharge was introduced.

Furthermore, RZD implemented an indexation of railway tariffs of 8.5% in October 2026, ahead of the previously scheduled December 2026.

Thus, in 2026, the negative trend in the Russian coal industry is intensifying amid rising production costs. Additional factors, continuing to adversely affect coal companies’ financial results, include high rail tariffs and limited rail infrastructure capacity on the Eastern range. Due to Western sanctions, the list of countries available for Russian coal exports remains limited.

Source: CCA