India, the second-largest buyer of Russian coal, has significantly reduced its imports of solid fuel from Russia.
Coal exports are vital to Russia’s economy. They provide a major source of revenue and jobs. As one of the world’s largest coal exporters, Russia depends on this industry to support its energy sector and maintain its position in the global market. Following Russia’s invasion of Ukraine, the European Union, the United States, and the United Kingdom imposed sanctions on Russian coal as part of broader economic actions against the country.
According to Moscow Time, citing Vedomosti and data from the Indian analytical agency Bigmint, India imported 6.1 million tons of thermal coal from January to September 2024. This is a 26% decrease compared to the same period last year.
Despite this drop, India increased its total coal imports by 12% year-on-year, totaling 137.8 million tons. The country’s main suppliers now include Indonesia, South Africa, and the United States, with Russia ranking fourth. This places Russia ahead of Australia, Mozambique, and Colombia in terms of coal imports.
The proportion of Russian coal in India’s thermal coal imports has fallen to 3% in physical terms. This is down from about 7% in January to September 2023.
After the European Union’s coal embargo began in August 2022, Russian coal miners sought new export markets. By the end of 2024, Russian coal exports to India may decline to between 18 and 20 million tons, marking a 23% to 31% decrease year-on-year.
Despite the challenges in exporting coal, Russian coal companies are cutting production. According to a report by Rosstat, production fell by 6.7% year-on-year in July, reaching a total volume of 31.5 million tons. This is the lowest amount produced since the onset of the coronavirus pandemic in 2020.
Even with reduced purchases of Russian coal, Bloomberg reported in early October that India has become Russia’s second-largest supplier of restricted critical technologies.
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