Russia’s coal industry consistently weathers crises without aid, but now it needs support

Business & Economy May 27, 16:26

Earlier, it was reported that Russian President Vladimir Putin had approved a program of support for the coal industry, prepared by the Ministry of Energy of Russia

KEMEROVO, May 27. /TASS/. The coal industry has historically endured numerous crises without resorting to systemic state support measures - however, given the current crisis, assistance is now requiredб Minister of Energy Sergey Tsivilev told reporters.

"The coal industry has navigated many crises. In the coal sector, this happens from time to time. The coal industry has learned to overcome these crises and we have never sought systemic state support measures. But at this particular time, so many negative factors are affecting the industry at the same time that this peak must be supported. We are working on this very closely," Tsivilev stated.

Earlier, it was reported that Russian President Vladimir Putin had approved a program of support for the coal industry, prepared by the Ministry of Energy of Russia. According to a letter from Russian Deputy Prime Minister Alexander Novak, several measures to improve the situation in the coal sector include a proposal for Russian Railways to conclude agreements with coal enterprises in Khakassia to guarantee the export of coal to eastern destinations in 2025. Additionally, the plan provides for a 12.8% discount by Russian Railways on coal exports in western and southern directions, and the reintroduction of lowering rates - 0.4 for distance and 0.895 for thermal coal - or the period from May 1 to December 31. The Ministry of Finance is tasked with ensuring that Russian Railways receives compensation for these measures, the letter noted.

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