coal plants in Kuzbass halt operations, facing a total of 17 shutdowns

The coal industry in Russia's Kemerovo region is grappling with a series of challenges, primarily due to Western sanctions and a decline in global prices. This situation, compounded by the EU's refusal to purchase Russian coal, has forced domestic producers to redirect exports to countries like China, India, and Turkey.

In an attempt to mitigate the crisis, President Vladimir Putin approved an anti-crisis program for the coal industry in May 2025. The program includes a special order for the financial rehabilitation or bankruptcy of coal industry organisations, tax and insurance contribution deferrals, and discounts on railway transportation to the south and west.

However, Dmitry Tortyev, a member of the expert council of the State Duma's Energy Committee, has expressed that these measures are insufficient. He suggests the need for federal programs for creating innovative clusters, tax incentives for processing industries, and synchronisation with national projects in energy and industry.

Deep processing of coal into coal chemical products or synthetic fuel could yield 3-4 times more profit than raw material exports. Yet, the demand for Russian coal has reportedly fallen by half in some countries, leading to losses exceeding 112 billion rubles in 2024.

The crisis has affected the Kemerovo region significantly, with seventeen coal enterprises ceasing operations and the number of problematic companies exceeding a quarter (180 coal-mining enterprises in the country). However, Governor Ilya Seryoduk has announced an anti-crisis program for the region's coal industry, focusing on modernisation, technological upgrades, improved safety measures, and the restructuring of unprofitable companies.

Notably, this program does not affect enterprises such as "SDS-Ugol" and "Yuzhkuzbassugol". As of April 2025, nine enterprises had closed and 20 were in the "red zone". The region currently has 151 coal enterprises for mining and processing.

Despite these efforts, the crisis in the coal industry continues in the current year, with losses expected to reach 300-350 billion rubles by the end of 2025. Ninety percent of coal from Khakassia is currently being exported to Asia, while the domestic market is reportedly under-supplied.

The industry's future seems uncertain, with the need for comprehensive and effective solutions becoming increasingly apparent. The ongoing discussions and proposed measures offer a glimmer of hope, but the road to recovery is likely to be long and challenging.