Russia Eyes Growing Indian Demand For Coal

New Delhi, Oct 8 (KNN) In a bid to expand its global coal market, Russia is actively seeking to increase its coal exports to India, a country facing a sharp rise in demand for the fossil fuel.

Russian Deputy Prime Minister Alexander Novak made the announcement, highlighting the growing importance of the Indian market as China, the largest importer of Russian coal, plans to reduce its coal usage for power generation.

India’s reliance on coal to meet its surging power demand is evident. The country’s coal production surged by 12% in the last fiscal year, reaching a record 997.8 million metric tons, with more than 75% of its electricity generated from coal.

In response, India has been increasing its imports, with 176 million tons of thermal coal entering the country in 2023. Russian exports to India alone amounted to 26.2 million tons last year, up from 20 million tons in 2022.

"Russian coal-producing enterprises have significant resources and are keen to expand their presence in the fast-growing Indian market," Novak stated.

He emphasised the strategic importance of bolstering trade ties with India, which has emerged as a key partner for Russian energy exports, especially as Moscow diversifies its trade relationships in the wake of Western sanctions over the Ukraine conflict.

The expansion of coal exports to India is part of a broader effort by Russia to strengthen economic ties with Asia, including its status as the largest crude oil supplier to India.

However, despite the political and economic cooperation, India has exercised caution in its engagement with Russia.

Recently, India refrained from purchasing liquefied natural gas (LNG) from Russia's Arctic LNG 2 project, which is subject to Western sanctions.

The growing demand for coal in India, combined with Russia’s abundant supply, positions the two nations for deeper collaboration, particularly in energy sectors where India’s appetite continues to outpace its renewable energy capacity.

As the global energy landscape shifts, both countries are expected to cement their roles as key players in the international coal trade in the years to come.

(KNN Bureau)