Russia may shut down one‑third of its coal firms - Ukraine's Foreign Intelligence Service
Illustrative photo: A third of Russia's coal industry enterprises may close (Getty Images)
Due to the loss of the European market and the drop in global prices, Russia's coal industry is going through a deep crisis. One-third of coal enterprises are on the verge of closure, Ukraine's Foreign Intelligence Service reports.
As of now, more than fifty coal enterprises are already at risk of shutting down. In total, as of early 2024, the terrorist state had 179 coal mining enterprises in operation:
- 52 mines;
- 127 open-pit mines.
Industry losses for the period January-May have already reached $1.44 billion, and by the end of the year, are projected to reach around $4 billion. Among the causes of the crisis:
- the European embargo imposed in August 2022, which forced Russia to search for new markets for nearly a quarter of its exports;
- a sharp drop in coal prices after the peak levels of 2022.
"Despite internal problems - aging infrastructure and logistical restrictions - it is particularly the loss of the key market that became the catalyst for the current situation. The limited capacity of Russian railways in the eastern direction, where the main coal flows are now being redirected, is also exacerbating the problems," Ukraine's Foreign Intelligence Service adds.
The closure of mines will have consequences for mono-cities and coal regions, such as the Kemerovo region.
As RBC-Ukraine previously reported, citing Ukraine's Intelligence data, there is a crisis in a number of key sectors of Russia's economy, something Moscow is attempting to hide.
