Russian govt approves measures to support coal companies, including deferring insurance premiums, providing export subsidies, restricting dividends
MOSCOW. May 30 (Interfax) - Russian Prime Minister Mikhail Mishustin has approved a number of measures to support the coal industry, the government posted on its official Telegram channel.
The government will particularly approve plans for the financial recovery of enterprises in the industry, specifically those that assist direct beneficiaries/shareholders, as well as place restrictions on the payment of dividends, increases in salaries for senior management, and cost optimization.
Coal companies will also receive targeted subsidies to compensate for part of the cost of logistics costs when exporting coal products over long distances.
All coal enterprises will also receive a deferment on the mineral extraction tax (MET) and insurance premiums until December 1, and the subcommittee could extend the deferment for a longer period via a separate decision if necessary.
Other measures include providing Siberian coal companies with compensation at 12.8% of the tariff for exporting coal in the northwest and south directions. The Energy Ministry will compile the corresponding list, and the subcommittee on providing financial measures of government support to individual organizations in the economic sectors will approve it.
Enterprises experiencing serious debt burdens will additionally be able to restructure the credit debt. The position of the Central Bank of Russia will be considered when working out the measure.
A targeted approach will be used to assist companies in the coal industry. The Finance Ministry and the Energy Ministry must work out and approve the criteria by June 5. The criteria will be the basis for reaching decisions on considering applications for government support for industry companies, the government said.
Mishustin previously said that the coal industry has faced serious challenges in recent years, particularly regarding global prices for all types of this fuel having fallen sharply.
"The situation has unfortunately continued worsening this year. Export prices fell nearly a quarter in the first four months. The high debt load of companies is complicating the situation. Significant expenses are required to maintain current operations and ensure industrial safety, labor protection, and the environment," Mishustin said.
"We need to assist promising enterprises that are experiencing temporary difficulties," he said.
Russian coal companies swung to a net loss of 112.6 billion rubles in 2024 from net profit of 374.7 billion rubles in 2023. The loss was already 19.9 billion rubles in January-February 2025 versus profit of 20.3 billion rubles in January-February 2024, the Federal State Statistics Service (Rosstat) said.
