The Russian coal industry is facing a serious crisis: over the past year, companies have dramatically increased the amount of short-term financing needed to close cash gaps. According to the Association of Factoring Companies (AFC), such loans have become a real salvation for coal miners, allowing them to quickly receive money for mandatory payments and avoid delays in payments. In fact, this is an analogue of payday loans for individuals, but with higher interest rates.
Sergey Grishunin, Managing Director of the NRA rating service, explained that the lack of liquidity in the industry is associated with falling coal prices, lengthening supply chains and problems with payments from both new and old counterparties. Classic bank loans have become less accessible due to the record high key interest rate of the Central Bank and the difficult financial situation of companies, which forces them to look for alternative sources of financing.
According to AFK, last year the factoring portfolio of the coal industry grew by 32% and reached 638.911 billion rubles. Coal companies account for 21.5% of the total factoring market. These figures indicate serious liquidity problems and the growing dependence of the industry on short-term loans.
In a difficult market environment, the Russian government pays special attention to supporting the coal industry. Prime Minister Mikhail Mishustin announced a special meeting on the situation in the coal industry next week. The meeting will discuss measures to support enterprises, including logistics and coal export at affordable prices, as well as proposals to improve the industry. Mishustin stressed the importance of ensuring the smooth operation of coal enterprises, especially at the Eastern landfill, and instructed the management of Russian Railways to prepare appropriate proposals for the meeting.