One of Russia’s leading mining companies has become the first coal producer to secure government aid amid a deepening crisis in the coal industry, the company’s deputy director for finance told journalists Monday.

Mechel has been granted a three-year deferral on tax and social security payments totaling over 13 billion rubles ($166,000,000), deputy director for finance Nelli Galeeva said.

The company expects to save an additional 500 million rubles ($6,000,000) per month once industry-wide assistance measures like deferred mineral extraction tax and social insurance payments come into effect.

“We were among the first to apply to the government for support and were the first to receive aid from the commission chaired by Finance Minister Anton Germanovich Siluanov,” Galeeva added.

Despite this assistance, the outlook for coal producers remains grim.

Mechel chief executive Oleg Korzhov said the industry is facing “significant difficulties,” and coal producers are bracing for a downturn in sales.

“Mechel plans to reduce coal shipments by about 25% compared with last year,” Korzhov added.

Korzhov characterized this as a “pessimistic” scenario, noting that “changes in either domestic or international circumstances could alter the outcome.”

However, he conceded that current conditions for the coal sector remain unfavorable, with prices at multi-year lows, a strong ruble hampering exports and rising company losses.