Russia plans to supply up to 40 million tons of coking coal to India annually in years to come

Raspadskaya coal mine one of Russia's coal mines. Photo: Maxim Shipachev

India has agreed to supply up to 40 million tons of coking coal from Russia annually, as part of the memorandum, which was recently signed by Russia’s Energy Minister Nikolai Shulginov and Indian Steel Industry Minister Ram Chandra Prasad Singh during the Russian Energy Week forum.

According to Shulginov, the document will stimulate enterprises in Russia and India in the development of coal deposits, the development of logistics and infrastructure, and R&D.

According to an official representative of the Ministry of Energy of Russia, the total supplies of Russian coal to India in 2020 amounted to about 8 million tons, of which 1.2 million tons - coking coal. In January - September 2021, Russia exported 5 million tons of coal to India, including 500,000 tons of coking coal.

According to some market sources, Russian coal companies have an  opportunity to significantly increase the production of coking coal, while among these companies are primarily Sibanthracite and SDS-Ugol. However, according to analysts of the Russian Vedomosti business paper, the existing railway capacities for such an increase in supplies are not enough, while the memorandum does not indicate a specific time frame for increasing exports to 40 million tons. A source in the coal company explained to Vedomosti that India's desire to increase supplies of Russian coal is due to the development of metallurgy in the country, and the desire to reduce dependence on Australian coal.

By: Eugene Gerden