Russian coal industry losses narrow to $2.6 billion in Jan-Aug 2026

Russian coal industry losses narrowed in January-August 2026, but high rail tariffs, financing costs and structural constraints continue to weigh on producers.

According to preliminary data, Russian coal companies posted a net financial result (profits minus losses) of 2.6 billion USD in January–August 2026. That compares with a loss of 3.03 billion USD a year earlier, down 15%. The share of loss-making companies dropped from 71% to 66%. Even so, the industry remains in a difficult position: 65 enterprises are on the verge of a complete shutdown, and 20 of them have already halted production.

The Ministry of Energy has lowered its forecast for the industry’s full-year 2026 loss to 3.6–3.7 billion USD. That is roughly half the spring stress-case estimate of around 7.2 billion USD. The ministry attributes the improvement to higher coal prices and exchange-rate movements. Deputy Energy Minister Dmitry Islamov said the industry has come through the worst. If prices hold and export volumes increase, the loss could shrink to about 1.2 billion USD in 2027.

However, it is still too early to speak of a sustained turnaround. Pressure on producers and exporters persists, with strong rouble and high interest rates. Rail transport costs keep rising. Tariffs rose 13.8% in 2025, against inflation of 5.6%. A 1% surcharge was introduced in March 2026, and freight rates were indexed by 8.5% from October 01, 2026, earlier than the originally planned December date.

Overall, although losses are narrowing, the industry’s financial position in 2026 remains difficult. Coal producers’ results continue to be weighed down by high rail tariffs, strong national currency, limited rail capacity on the eastern route, and the narrow range of countries where, Western sanctions still allow Russian coal to be sold.

Source: CCA