Russian coal and steel producer Mechel, sanctioned by the United States a year ago, has agreed on a new debt restructuring as low coal prices and high interest rates put pressure on its payment schedule.
Russian companies and lobby groups have raised concerns over soaring interest rates, which closed the year at a steep 21%. The central bank, facing sharp criticism, attributes the slowdown in investment to widespread labor shortages.
Mechel reported that it postponed 2025- 26 payments of the principal debt to 2027- 30. the company representative commented that this would ease the burden on its cash flow and financing for its activities.
Russian coal miners are said to be struggling with falling global prices, Western sanctions, and ongoing infrastructure challenges. Mechel, owned by businessman Igor Zyuzin and his family, has previously restructured its debt, including the sale of its flagship Elginskiy mine in 2020. The company also negotiated a seven-year debt repayment extension, with an option for three years.
Mechel’s net debt, excluding penalties and fines, increased by 5% in the first half of last year, reaching 262.5 billion roubles by mid-year.

BCS analysts said high rates and low coal prices made it hard for Mechel to pay debt, so the restructuring would likely maintain the company’s financial stability. The new restructuring raises the amount Mechel will have to pay from 2027-30.