Russian mines in the Kuzbass region have announced indefinite shutdowns as revenues and profits crash.

Last week, the Kremlin announced that three major coal mines would stop production until the current industry crisis “stabilises”.

Sibcoal Management Company, Razrez Zadubrovsky Novy, and Razrez Evtinsky Novy have now all suspended production and over 1,000 miners received layoff notices within the past week.

Industry insiders say the number of layoffs is likely to increase amid worsening market conditions and mounting financial woes.

The coal mining industry in Russia is facing an existential crisis as it struggles to find new clients to replace those in the West.

New data show that coal companies’ losses jumped 4.1 times between January and September this year to a staggering US$1.9 billion (£1.5bn).

Furthermore, the share of loss-making companies amounted to 52% compared to 35% in the same period last year.

The Kuzbass is one of the most important and largest coal and coke-producing regions of the country.

Finance Minister Anton Siluanov reported that coal profit tax revenues for the region have dropped by an eye-watering 59%.

Similar declines have been observed in Buryatia and the Jewish Autonomous Region.

Western sanctions, which banned Russian coal imports, are the primary cause of the crisis, leading to a significant drop in exports.

China and India are now the main markets for Russian coal, but both have reduced their imports.

Exports to China fell by 8%, while shipments to India plunged by 55% in the first half of 2024.

The pit closures come in the wake of hunger strikes by miners over unpaid wages.

Miners at the Inskaya pit decided to take drastic action after going unpaid for four months.

The mine’s management promised to pay the outstanding wages but failed to deliver.

In November, the striking miners were sacked, with wage arrears reaching 46 million rubles (£361K).