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India has imported coal worth $331.10 million from Russia in the first 20 days of June this year. This is six times more than the same period last year. Apart from this, India is also importing crude oil from Russia at a record level.
According to the data, the value of India’s oil trade with Russia increased more than 31 times to $2.22 billion in 20 days. Oil purchases during this period averaged $111.08 million a day, more than three times the $31.1 million spent in the previous three months.
Despite global sanctions, there has been a sharp jump in coal imports by India from Russia. Significantly, Russia is giving up to 30 percent discount on coal. Despite sanctions imposed by many countries, India has not stopped any trade with Russia.
India has said that violence in Ukraine must end. But abruptly stopping the purchase of goods from Russia will cause volatility in global prices and hurt its customers. US officials have told India that there is no bar on importing fuel from Russia but it should not accelerate too much. At the same time, European traders stopped trade with Russia, direct Indian buyers are taking advantage of it. They are buying coal from Russia on a large scale despite the high transportation cost.
Imports of coal and crude oil increased
India has bought Russian coal daily for an average of Rs 128.62 ($16.55 million) for three weeks. This is more than double the 77.1 million purchased in the three months after the Russo-Ukraine War on 24 February. Oil purchases averaged Rs 863.70 ($110.86 million) per day over the last 20-day period.
increased demand for coal
With the economic activities in India almost fully resuming this time and increasing demand in the summer, power generation companies have been under pressure to generate more power. To meet this demand, the import of coal has been increased.
reason for increased purchases
There are two major reasons for this sharp increase in fuel purchases from Russia. One is that Russia is offering attractive prices and the other is that merchants there are accepting payments in rupees and dirhams as well. Due to this, the purchase of coal from Russia is expected to increase further.