MOSCOW, July 1 (Xinhua) -- Russia's coal sector has emerged as the country's only major unprofitable industry in 2024, suffering significant financial losses and a decline in output, local media reported on Tuesday.
In an interview with TASS news agency, Russian Deputy Energy Minister Dmitry Islamov said the coal industry reported losses totaling 112 billion rubles (1.4 billion U.S. dollars) in 2024, with accounts payable reaching 1.2 trillion rubles (15.3 billion dollars). About 53 percent of all coal enterprises were operating at a loss.
Islamov attributed the crisis to a combination of global and domestic factors.
"International coal prices have nearly halved since the beginning of the year. This, coupled with a stronger ruble and extended logistics routes, has severely impacted profitability," he said.
To mitigate the downturn, the Russian government is considering targeted financial assistance to 73 coal mining enterprises, Islamov said.
The support could be provided for varying durations, including six months or one year, he added.
Russia produced 438 million tonnes of coal in 2024, which was 5 million tonnes less than in 2023. ■
