Huge increase in Russian coal exports to India

Exports of Russian coking coal to India jumped by 2.3 times year-on-year over the first eight months of 2023, reaching 4.3 million tons, Vedomosti reported on Monday, citing data from the Indian Ministry of Commerce and Industry.

According to the figures in the report, Russia’s contribution to India’s overall coking coal imports, primarily used in steel production, has climbed from 5% to 11.2% during this period.

Australia remains India’s primary source of imports, but these supplies decreased by 10% in the period from January to August, resulting in their share of Indian imports dropping from 58.2% to 51.7%, as reported.

New Delhi has significantly increased its purchases of both coking and thermal coal from Russia since the previous year. This shift in trade occurred after Moscow redirected exports from EU countries and offered substantial discounts to Asian buyers.

According to a recent report from consulting firm Yakov and Partners (formerly McKinsey Russia), India is expected to surpass China as the top buyer of Russian coal within the next decade.

Despite its efforts to expand renewable energy projects, India continues to rely heavily on coal as its primary source of power generation.