Mechel Mining, the mining division of steel and coal group Mechel , as well as Vorkutaugol and SDS-Ugol are on the list of companies that will get individual support measures under a program to aid Russia’s coal industry, Energy Minister Sergei Tsivilev said at a briefing at the St. Petersburg International Economic Forum.
He recalled that there are currently two types of measures: broad support that all companies can access and individual measures that are considered by a subcommittee chaired by Finance Minister Anton Siluanov.
“We have already reviewed four companies. They are Mechel Mining (10 coal mines), Vorkutaugol (five mines), SDS-Ugol (five mines) and SUPK. Other companies up for consideration are Severny Kuzbass (two mines), Sila Sibiri and Razrez Stepnoi,” Tsivilev said.
He said particular attention is being paid to coal companies operating in Khakassia, because this industry has a substantial impact on the region’s economy.
“It was decided that companies in Khakassia will be given priority and decisions on whom and in what amount to help will be made for each company separately. Perhaps we need to help even more, but this will depend on the particulars of the financial condition of each of them,” Tsivilev said.
The Russian government approved a set of measures to support the coal industry at the end of May. Among other things, they call for the approval of financial recovery plans for companies in the sector and restrictions on dividend payments. Companies will be provided with targeted subsidies to offset a portion of logistics costs for coal exports over long distances.
All coal companies will get a deferral on the mineral extraction tax and social security contributions until December 1. Companies with large debt burdens will be given the opportunity to restructure their debt. Siberian coal companies will be compensated for 12.8% of the rate for export shipments of by rail on the northwestern and southern routes.
The government said it would use a targeted approach when distributing the support to coal companies.
The combined losses, less profits, of Russian coal companies grew to 79.9 billion rubles in the first quarter of 2025 from 19.9 billion rubles in the first two months of this year, while in the first quarter of 2024 profits exceeded losses by 4.7 billion rubles.