The coal industry in Russia will receive additional support
Coal industry enterprises will receive additional financial support, which will help them maintain stability and continue development in the economic environment that is difficult for the industry. The corresponding measures, both financial and fiscal and logistics, were approved by Prime Minister Mikhail Mishustin. Coarseers welcome the decision of the authorities, but some of them say that the industry is unlikely to survive without a significant transformation.
The coal sector will receive additional financial support, follows from the Decree of the Government of the Russian Federation on measures to support the coal industry, approved by Mikhail Mishustin on May 29 following a meeting dedicated to the problems of the industry. Several proposals were approved at the meeting, most of which have already been set out and even approved by Russian President Vladimir Putin (See “Kommersant” from May 14).
- Coal industry enterprises will be provided with a deferral for personal income tax and insurance contributions until December 1. If necessary, the subcommitual may consider the issue of extending this measure for a longer period (See “Kommersant” from March 19).
- For coal companies with a high credit load, it is recommended to provide an opportunity to revise the terms of credit obligations.
- Coal companies will provide targeted subsidies for partial compensation for logistics costs when exporting coal to long distances
- In addition, compensation will be provided in the amount of 12.8% of the tariff for export transportation of coal in the north-west and southern directions for Siberian coal companies. The list of these companies will be drawn up by the Ministry of Energy and approved by the subcommission. Logistic subsidies, however, were already criticized by the Ministry of Transport, wrote earlier “Kommersant” (See “Kommersant” from May 21).
Of the new measures – the programs for refinancing companies from the coal industry, including measures to support the main shareholders, restrictions on the distribution of profit in the form of dividends, increase the salary of management personnel, as well as strategies for minimizing expenses. In addition, the Ministry of Finance and the Ministry of Energy, responsible for the implementation of support measures, must develop and approve the criteria by June 5 by which applications for state support for coal companies will be considered.
None of the coal miners pays dividends and so. In general, the industry welcomes new support measures.
“We support the government’s decision,” says Vladimir Korotin. “The CEO of Russian Coal.“ Now the coal industry, especially energy coal manufacturers, have been experiencing the acute crisis since the 1990s. At the stake, preserving thousands of jobs in the ten regions of Russia, primarily in the Siberian Federal District (Siberian Federal District). » The key problems of the industry, notes Mr. Korotin, are the volumes of coal exporting east of the regions of the Siberian Federal District, as well as a critical cost of transporting by rail and passage in ports critical for manufacturers. “Now the costs of logistics are made unprofitable export of energy coal,” he states. “The tax revenues of several regions depend on the export of coal, and this is primarily social programs, roads, infrastructure, and salaries of state employees. In such a situation of the industry and coal mining regions, state support is vital. ”
The Sibantracite group also believes that the developed measures will help the entire industry become stronger in the competition in international markets and at the same time will strengthen the position of each of the companies. “Many of the coal industry enterprises are now burdened with huge debts, are on the verge of bankruptcy, and extremely important for them is the decision made today to give them the opportunity to restructure credit debt,” the Sibantracite notes. According to experts, more than 50% of the industry companies are unprofitable today (See “Kommersant” from January 31).
But some Kommersant’s interlocutors believe that some support measures will not give an impetus for the development of the coal industry.
“Support measures will avoid disaster in the coal industry, but now it is clear that we are witnessing the natural evolution of the coal industry: from the supplier of cheap, low -competed energy coal, the Russian carlet should transform into the largest supplier of high -quality metallurgical coal – dust -angle fuel, anthracite and coking coal, argues,” reasons The interlocutor of Kommersant in the coal industry. – This will give a greater effect to the Russian economy than continuing the increase in energy of energy coal. ” As for a decrease in the volume of shipment through the ports, there are no disasters, he believes: “Living competition will lead to the healing of the Stevor market and the closure of the coal transshipment at the terminals – B unsuccessful for this – BOThe lushing part of the transshipment will be concentrated in specialized coal ports. ”
In terms of costs of production of Russia, in the middle of the spectrum of the cost of costs among the leading coal export countries, the partner of Neft Research in consulting Alexander Kotov notes. “This leaves the hope that with the correct support of the industry, it can be competitive for several more decades and bring the country currency revenue,” he says. In the short term, according to Mr. Kotov, support can also be reduced by the ruble exchange rate – this significantly improves the economy of coal supplies for export even while maintaining current prices ($ 62.7–94.7 per ton of energy coal with a fat content of 5000 kcal depending on the port). And with a radical reduction in coal exports of the country’s foreign trade balance, the country can be reduced by 40%, the expert warns.
