Russia’s Kemerovo coal industry grapples with sanctions, 17 mines cease operations

The coal sector in Russia’s Kemerovo region is grappling with significant challenges as 17 coal enterprises have suspended their operations, underscoring the severity of the ongoing crisis within the industry.

Speaking at a press conference, Governor Ilya Seredyuk attributed the difficulties to the combined impact of Western sanctions and a sustained decline in global coal prices, Caliber.Az reports, citing Russian media.

“The coal industry is currently facing difficulties due to Western sanctions and declining global prices. Regarding the closed enterprises, as of today, 17 coal enterprises have ceased operations, though not all of these closures are permanent,” Seredyuk stated, without disclosing the specific names of the affected companies.

The governor further explained that approximately half of the halted operations have been placed into a state of conservation, with employees being reassigned to other facilities within affiliated holding companies. “Half of those that have shut down are definitely in a state of conservation, and employees have been reassigned to other enterprises within holding companies, since we have holding structures that oversee multiple enterprises,” he added.

Seredyuk emphasized that despite these closures, the region still hosts a substantial coal industry, with 151 active enterprises involved in coal mining and processing.

By Vafa Guliyeva