RE: Coal price17 Mar 2022 07:37
Know who your friends are? How many millions in aid does the UK send India?
COLUMN – India looks to Russia to solve the energy crisis Moscow created: Russell
05:46
(The opinions expressed here are those of the author, a columnist for Reuters.)
By Clyde Russell
LAUNCESTON, Australia, March 17 (Reuters) – Can Russia rescue India from the high energy prices caused by Moscow's invasion of Ukraine?
It may seem a bizarre twist of logic, but India appears to be aiming to ramp up imports of Russian crude oil and coal in a bid to lower the impact of sky-rocketing prices, largely caused by Russia's military action in the first place.
Russian energy exporters are offering cargoes at steep discounts, as traditional buyers in Europe and Asia shun Russian commodities in the wake of the Feb. 24 attack on Ukraine.
But India has so far stuck by its longstanding ally, refusing to condemn the invasion, and now New Delhi is looking to lower its crippling import bills by turning to Russian crude and coal.
Coal offers the best immediate substitute for India, given that Russian grades of thermal coal are similar to what India already imports from Australia and South Africa.
There is also an established trade in the polluting fuel, meaning Indian buyers already have relationships with Russian exporters.
But Russia's share of India's coal imports is relatively small, accounting for just 3.4% in 2021, with 5.54 million tonnes out of total imports of 164.8 million, according to data compiled by Refinitiv.
Australia, which ships both thermal and coking coal to India, was India's biggest supplier, with 64.91 million tonnes, followed by Indonesia with 47.42 million and South Africa with 23.01 million.
India would be seeking to replace Australian and South African cargoes with supplies from Russia, given the massive price surge in benchmark prices for these grades since the Feb......
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