India will save another Russian market. Analysts calculate that the Asian country will soon be the largest importer of Russian coal.
India does not care much about the attitude of Western countries towards Russia. The Narendra Modi-led state has adopted a purely business approach. Extremely pragmatic and excluding any moral judgments, he buys where it is profitable. This action may boost the country’s economy even further.
India buys Russian coal
After many months ago, India decided to take advantage of Rosneft’s offer for extremely cheap Russian crude oil, now the time has come for another purely business decision. Gradually, the import of another energy resource, which representatives of European countries stopped buying from Russia, is also increasing.
According to the experts of the consulting company Yakov and Partners (until recently McKinsey in Russia), in 20 years the main importer of Russian steam and coking coal will be the countries of Southeast Asia. India tops the list and is expected to become the largest customer of Russian mines by 2030.
Oil and coal at a discount
The country led by Prime Minister Narendra Modi does not hide that it is taking advantage of the fact that raw materials extracted in Russia have become extremely attractive due to economic sanctions and embargoes imposed by Western countries. The multi-year supply contracts that India has negotiated are much cheaper than before the war in Ukraine began.
Before the war, the largest importer of Russian coal was China, followed by the European Union. In February 2022, the situation changed dramatically.
Analysts indicate that as a result of interest from new countries, coal exports from Russia will not experience major shocks in the coming years. The shortages that have occurred due to sanctions will be filled with orders from Asia.