Russia became India’s third-largest coal supplier in July, with imports rising by over a fifth compared with June to a record 2.06 million tonnes, data from Indian consultancy Coalmint showed.

Russia has historically been the sixth-largest supplier of coal to India, behind Indonesia, South Africa, Australia, and the United States, with Mozambique and Colombia alternatingly featuring in the top five.

India expects its central bank’s recent approval to allow payments for commodities in the Indian rupee to provide a major fillip to bilateral trade with Russia. India’s imports from Russia have jumped nearly five times to over $15 billion ever since Russia invaded Ukraine.

India, the world’s second-largest producer, importer and consumer of coal, has historically imported more coking coal used mainly in steelmaking from Russia, with Australia being the other key supplier.

However, steep discounts offered by Russian suppliers to Indian consumers in recent months have incentivised higher buying of thermal coal used mainly in power generation especially as global prices have traded at near-record highs due to western sanctions choking traditional trade.

Thermal coal imports from Russia jumped 70.3 per cent in July, compared with June, to a record 1.29m tonnes, while coking coal imports rose by over two-thirds to more than 280,000 tonnes, Coalmint data showed.

Indonesia was the top supplier, while South Africa was marginally ahead of Russia, the data showed. Higher coal imports from Russia were mainly driven by cement manufacturers and steelmakers, two Indian traders said.

Overall Indian coal imports, including shipments of anthracite and PCI coal, were nearly 10pc lower in July at 23.8m tonnes, compared with record imports of 26.29m tonnes in June, the Coalmint data showed.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Price bombs
17 Jun, 2024

Price bombs

THERE was a time not too long ago when the faces we see sitting in government today would cry themselves hoarse over...
Palestine’s plight
Updated 17 Jun, 2024

Palestine’s plight

While the faithful across the world are celebrating with their families, thousands of Palestinian children have either been orphaned, or themselves been killed by the Israeli aggressors.
Profiting off denied visas
17 Jun, 2024

Profiting off denied visas

IT is no secret that visa applications to the UK and Schengen countries come at a high cost. But recent published...
After the deluge
Updated 16 Jun, 2024

After the deluge

There was a lack of mental fortitude in the loss against India while against US, the team lost all control and displayed a lack of cohesion and synergy.
Fugue state
16 Jun, 2024

Fugue state

WITH its founder in jail these days, it seems nearly impossible to figure out what the PTI actually wants. On one...
Sindh budget
16 Jun, 2024

Sindh budget

SINDH’S Rs3.06tr budget for the upcoming financial year is a combination of populist interventions, attempts to...