India has been increasing its imports of Russian coal in recent weeks, buying it at discounts of up to 30%. This is reported Reuters citing sources as well as unpublished figures from the Government of India. According to them, from May 27 to June 15, India imported coal from Russia for $331.17 million, which is six times more than in the same period a year earlier. The volume of purchased Russian oil since the end of May has increased by more than 31 times, to $2.22 billion.
Reuters estimates that India has been buying Russian coal for an average of $16.55 million a day for three weeks. This is more than double its daily purchase volume ($7.71 million) made in the three months since the start of the Russian military operation in Ukraine. Purchases of Russian oil by India over the past 20 days averaged $110.86 million per day. This is more than three times more than the previously spent $31.16 million daily.
Offshore subsidiaries of Russian coal traders such as Suek AG, KTK and Cypriot Carbo One offered discounts ranging from 25% to 30% on raw materials, Reuters sources said. This has spurred bulk purchases of Russian coal by traders who supply it to utilities and cement producers. One of the interlocutors of the agency clarified that the Singapore branch of Suek also accepts payments in dollars.
Indian companies will continue to buy Russian coal in bulk, with imports expected to hit a seven-and-a-half-year high in June, according to Refinitiv Eikon, a financial market infrastructure and data analysis center. One of the Reuters sources explained that the trend of increasing coal purchases from the Russian Federation will continue, as India is “attracted by discounts.” “Russian traders are liberal in terms of payment methods and accept payments in Indian rupees and United Arab Emirates dirhams,” he says.
The Indian Ministry of Commerce has not yet commented on this information.
Western countries began to refuse Russian energy carriers within the framework of sanctions in response to the Russian military operation in Ukraine. India’s authorities fear that coal depletion could lead to an even bigger energy crisis in September and October if companies can’t stock up on enough fuel for the rainy season, media reported. In this regard, New Delhi may soon begin negotiations with Russia, as well as with Australia, Indonesia and South Africa to import coal at a reduced price. For the whole of 2021, deliveries of Russian thermal coal to India amounted to 1.3 million tons. In the first quarter of 2022, its supplies increased year-on-year by 2.7 thousand times, to 573.2 thousand tons.
Details – in the material “Kommersant” “Russian coal is mastered in India.”
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