The coal industry of the aggressor country russia is experiencing a deep crisis, which has significantly intensified after the loss of the European market and the fall in world prices. This is stated in a report by the Foreign Intelligence Service of Ukraine.
According to the Foreign Intelligence Service, more than fifty coal enterprises are already under threat of closure. In total, as of the beginning of 2024, 179 coal mining enterprises (52 mines and 127 sections) were operating in the russian federation. The industry's total losses for January-May have already reached USD 1.44 billion, and are forecast to be approximately USD 4 billion by the end of the year.
Among the main reasons for the crisis are the European embargo imposed in August 2022, which forced the russian federation to look for new markets for almost a quarter of its exports, and a sharp drop in coal prices after the peak values of 2022.
The Foreign Intelligence Service emphasized that despite internal problems - infrastructure deterioration and logistical constraints - it was the loss of a key market that became the catalyst for the current situation. The limited capacity of russian Railways in the eastern direction, where the main coal flows are now directed, also exacerbates the problems.
The closure of mines will have significant socio-economic consequences, especially for single-industry cities and coal regions, such as the Kemerovo region. Government support measures, including tax deferrals, insurance premiums, and debt restructuring, will not save the situation.
As the Ukrainian News agency earlier reported, according to the Foreign Intelligence Service, two-thirds of the economy of the aggressor country of russia is experiencing stagnation. At the same time, the most crisis-ridden processes occur in those sectors of the economy that account for 17% of the country's total budget revenue.
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