The Ministry of Finance is preparing support measures for the coal industry: tax deferrals and preferential conditions

The Russian Ministry of Finance has developed a draft resolution providing serious support for coal companies. The key measure is to provide a deferral for the payment of mining tax and insurance premiums until November 30, 2025, as well as for the repayment of arrears on a single tax bill within the same period. The total amount of deferrals may reach 63 billion rubles.

Conditions for granting benefits

• Deferrals will be granted without interest on the amount owed.

• Within 10 days after the approval of the resolution, the Ministry of Energy will form a list of companies that meet the criteria for receiving support.

• The final amounts of assistance will be approved after the confirmation of the companies& applications.

Application review process and potential recipients of support

• Such companies as Mechel, Vorkutaugol, HC SDS-Ugol, Power of Siberia Management Company, TD Donskiye Ugli, Severny Kuzbass Management Company and SUPK have already declared themselves among the applicants for support.

• Subsidies, credit holidays and debt restructuring are provided for these enterprises.

• We are talking about the support of 34 mines, 16 processing plants and 20 auxiliary production complexes.

• At the moment, the Ministry of Industry has confirmed the need for assistance to five companies, and about 40 more companies are expected to receive applications in the near future.

This set of measures is aimed at stabilizing the position of key players in the coal industry in conditions of high debt burden and difficult economic environment.

Earlier, Deputy Energy Minister Dmitry Islamov presented alarming statistics at a meeting of the Federation Council Committee on Economic Policy. The representative of the department stressed the catastrophic state of the coal mining industry.