The Russian coal industry remains under severe financial pressure despite tax deferrals and other state support measures.
Russian coal companies will return 0.7 billion USD to the federal budget by the end of 2026, funds that were provided to them as deferrals on mineral extraction tax (MET) and insurance premiums, according to Energy Ministry.
Some 138 companies were eligible for deferrals totalling 1 billion USD, but only 86 that developed efficiency improvement programmes ultimately received 0.7 billion USD in relief. The programme, launched in 2025, enabled coal producers to postpone tax and social security payments and offered interest-free instalments on accumulated arrears, but the tax breaks have failed to turn the situation around in the industry.
The industry’s financial health continues to deteriorate despite state support. Losses of Russian coal companies in 2025 were 3.5 times higher than in 2024. The share of loss-making companies reached 70%, up from 50% a year earlier. In Q1 2026, the net loss kept growing, hitting 1.1 billion USD (+20%, vs. Q1 2025). Sixty-two enterprises are in the red; of which 20 have already halted production, while the rest are on the verge of suspension. Meanwhile, the Ministry of Energy forecasts that losses of Russian coal companies will increase by one and a half times in 2026.
Compounding the industry’s woes is the government’s refusal to introduce tariff incentives for export shipments via the northwest and southern ports, which Deputy Prime Minister Vitaly Savelyev announced in late June. Market participants have repeatedly stated that without discounts on rail tariffs, transportation along these routes remains economically unviable; however, the government has concluded that the economic viability of such shipments remains stable even without additional concessions.
In April, Energy Minister Sergei Tsivilev said the ministry had no plans for further support measures and that companies unable to cope with the current situation would be liquidated. Meanwhile, in late June, Deputy Prime Minister Alexander Novak instructed the Economy Ministry and relevant agencies to prepare additional support measures for the coal industry, underscoring the severity of the crisis.
Source: CCA
