US EditionRussian Coal Industry Faces Mounting Losses as Dozens of Companies Near Collapse
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kreiszeitung.de
mannheim24.deLosses caused by sanctions and rising costs shock Russia's economy. Some companies are now slipping into a deeper crisis than expected.
Russian Coal Industry Faces Mounting Losses as Dozens of Companies Near Collapse
More than a quarter of Russian coal companies are at risk of closure amid a deepening crisis in the coal industry, Deputy Energy Minister Dmitry Islamov said on Tuesday. “Based on data from the Energy Ministry, 51 enterprises — both mines and open-pit operations — have either been halted or are on the verge of suspending activities,” he said at a meeting of the upper-house Federation Council Committee on Economic Policy.
Following Russia's aggression against Ukraine, the European Union completely suspended imports of Russian coal. This withdrawal from its most profitable market severely affected mines. Previously, Russia was the main exporter of the raw material to the EU and the third largest in the world, reports today's Rzeczpospolita.
More than 50 coal companies in Russia (28% of the total) are on the brink of bankruptcy or have already gone bankrupt. Thousands of Russians have lost their jobs. Authorities estimate the losses at the equivalent of 16.4 billion złoty. And although the Kremlin adopted a miners' aid program in May, the situation continues to deteriorate.
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