Russia’s Oil, Gas, and Coal Sectors Enter Freefall as Losses Accelerate
Russia’s extractive industries are in deep crisis, according to new data from the Russian state statistical agency Rosstat. In February and March 2025, the country’s oil, gas, and coal sectors recorded catastrophic losses, marking the most severe collapse in industrial profitability since the invasion of Ukraine began.
The numbers are unambiguous. The total profit from Russia’s mining sector fell -61% year-on-year in February, followed by a staggering -89% drop in March. This plunge dragged down the performance of the entire Russian economy: with total corporate profit collapsing to -28% in March. Rosstat’s charts show that extractive sector losses were the main cause of the broader economic contraction.
Within the mining sector, oil and gas performed even worse. February saw profits fall by -73% compared to the previous year. But in March, the sector crossed into absolute loss, recording a -106% year-on-year collapse. To understand the figure: in March 2024, oil and gas profits were ₽330 billion; by March 2025, the same sector posted a -₽20 billion loss. That’s a swing of over ₽350 billion in a single year.
Coal is also imploding. While 2023 ended with profits in the coal sector still slightly positive, by January 2025 it had already posted losses of -₽6.2 billion. In February, losses doubled to -₽13.7 billion, and by March reached -₽60 billion in the red. That marks a monthly year-on-year collapse of -89% and leaves the industry down -₽80 billion in the first quarter of 2025 alone.
The broader three-month picture is grim. From January to March 2025, mining sector profit fell -38% compared to the same period in 2024. Oil and gas earnings dropped -45%, and coal posted a total quarterly loss of -₽79.9 billion—a staggering 1,800% year-on-year drop.
The crisis comes amid falling global prices for oil, gas, metals, and coal. But unlike Western energy firms, Russian producers face not only commodity volatility but also crippling sanctions, logistics bottlenecks, and shrinking export markets. China’s purchases have helped cushion the blow somewhat, but not enough to offset steep losses in Europe and the G7.
Analysts warn that the worst may still lie ahead. April’s data—due in coming weeks—will reflect the full impact of recent price declines and shipping disruptions. As energy prices continue to slide and inventories pile up, Russia’s extractive backbone is cracking—dragging the rest of the economy down with it.
