July 12, 2025 - Russia’s coal industry has slipped into crisis under the weight of high borrowing costs and sanctions as slowing demand in China compounds with falling prices to expose deeper cracks in the economy.

Only half of Russia’s coal companies remained profitable in 2024, according to the Federal Statistics Service, and the situation is continuing to deteriorate. One top miner, Mechel PJSC, said on June 30 that it may cut sales by a quarter this year and has already begun scaling back output as each newly mined ton deepens losses. Some mines in Siberia have had to halt output.