The crisis in the coal industry of Kuzbass is destabilizing all of Russia – foreign intelligence

Due to enormous losses, Russian coal companies are closing mines and delaying the payment of salaries to workers, creating a social crisis and threatening the destabilization of the country. This was reported... reports Foreign intelligence service.

In Kuzbass, where coal mining is the main source of employment, the situation is turning into a social crisis, the agency notes.

In June, the large Spiridonovskaya mine in the region suspended operations, leaving 900 workers without wages. The total debt owed to them is approximately $1 million. The employer plans to lay off most of the workers to reduce losses.

Other mines are operating at a loss to avoid mass layoffs. Furthermore, mothballing mines is expensive, and reactivating them is even more costly.

It is noted that Kuzbass has a deficit budget, and the region's debt is approaching $1.1 billion, which is 42% of its revenue.

"Without a plan of action, local authorities are urging workers to leave the problematic mines," the intelligence service reported.

Intelligence services emphasized that due to labor depression, mine workers in Kuzbass are becoming a reserve of personnel for the occupying army.

"The dynamics could lead to destabilization not only in the region, but also in the country as a whole," the agency concluded.

In the first five months of the year, the industry... recorded net losses of over $1.2 billionAnd by the end of the year, the losses of Russian coal companies could exceed $3.9 billion – three times more than in 2024.

• Due to the Russian invasion of Ukraine, since August 11, 2022, Europe... stopped buying of Russian coal. At the same time, in August 2022 import of Russian coal to China reached a five-year high.
• This year, the crisis hit the Russian coal industry after the loss of European markets and the tightening of international sanctions. And according to sources cited by Bloomberg, one of the key problems of the industry has become the inability to provide equip themselves with equipment after three years of sanctions.
• Import coal exports to China have fallen to their lowest level in more than two years amid declining demand and rising domestic production. The world's largest consumer and producer of coal has been actively selling this fossil fuel abroad in recent months.