Development of Russian Coal Mining Companies

Abstract

The prospects for development of the coal mining industry are considered in the light of the gradual transition from commodity exports to manufacturing in Russian economic policy. In particular, the challenges to the financial stability of coal mining companies are identified. The following factors are considered in more detail: the erosion of energy self-sufficiency in Russia’s manufacturing sectors; and the reliance on irrational and expensive logistics. The influence of innovation at coal mining companies on emerging risks as a result of the structural changes in industrial production is highlighted. The decrease in financial stability is analyzed, and its negative influence on the economics of Russia’s coal sector is established. Investment projects in the coal mining industry are discussed; the capital investments in the medium term for the development of the sector are assessed. Calculations of investments in the industry from various sources permit the evaluation of predictions regarding the implementation of export-oriented projects.