Russian Deputy Prime Minister Alexander Novak reported that Russia is interested in increasing its coal exports to India to meet the country’s growing fuel demand.
China reportedly remains the largest buyer of Russian coal, but Moscow says that India may take over by the beginning of the next decade. This comes as Beijing is planning to reduce its use of coal for power generation.
India is increasingly relying on coal to meet electricity demand at a time when the world is starting to cut back on fossil fuels. Increased coal power production earlier this year outpaced renewable energy growth for the first time since 2019.
Quoting from reuters.com new coal production in the last fiscal year to March 31 rose to a record 997.828 million metric tons. This data shows a 12% increase from last year. By 2023, more than 75% of India’s power generation will come from coal.
According to the Russian energy ministry, by 2023 India will have imported 176 million tons of thermal coal, driven by power generation. Russian exports to India reached 26.2 million tons last year, up from 20 million tons in 2022.
Russia has become the largest supplier of crude oil to India thanks to diversifying trade ties away from Europe, once Moscow’s main business partner, due to a severe political standoff with the West over the conflict in Ukraine.
Novak said Russian coal-producing companies have significant resources and are interested in expanding their presence in the fast-growing Indian market.
Despite close political and business ties, India remains wary of sanctions against Russia. Last month, India said it would not buy liquefied natural gas (LNG) produced from Russia’s Arctic LNG 2 project, which is under sanctions from Western countries.
Source: https://www.reuters.com/markets/commodities/russia-seeks-boost-coal-exports-india-2024-10-07/
