Page 11 - AsiaElec Week 16 2022

AsiaElec COAL AsiaElec

India to increase

imports of Russian coal

INDIA IGNORING the global community, India is Speaking of the move for a ban by the Euro-
once again thumbing its nose at sanctions tar- pean Commission, Norwegian business intelli-
geting Moscow for its invasion of Ukraine, and gence agency Rystad Energy said: “The EU ban
in the past month its coal imports from Russia on Russian coal imports comes at a time when
have reached levels not seen in over two years. the international coal market is already very
In news released by Paris-based commod- tight with correspondingly high prices” and as a
ity intel firm Kpler in the past few days, it was result, moves by India and China in recent weeks
revealed that in March, India imported 1.04mn have led to “a surge in coal demand in Asia as
tonnes of Russian coal, the highest figure since countries try to minimise imports of expensive
January 2020. natural gas”, which in turn “has sent coal prices
It is thought that the bulk of the imports were soaring in the past year.”
shipped from Russian ports in the Far East in the In recent weeks, European coal imports have
weeks after the February 24 invasion. skyrocketed to $300 per tonne compared to just
Reacting to the news, Vivek Dhar, director $70 in 2021.
of mining and energy commodities at Austral- The moves by India, while largely defended
ia’s leading Commonwealth Bank, said: “(M) across the political spectrum in New Delhi,
arkets suspect that India and China may boost have caused consternation in the West, with the
coal imports from Russia, offsetting some of the United States particularly vocal in condemn-
impact of a formalised EU ban on Russian coal ing New Delhi for continuing to fund Russian
imports.” aggression in Ukraine.
India is at present the world’s second-largest The head of trade at Washington-based
importer of coal after China, and also ranks sec- government relations firm Vogel Group, Samir
ond, again after Beijing, in terms of coal use. The Kapadia, said: “Despite warnings from the West,
vast majority of coal imported by India serves to India continues to lean into their supply chain
power 70% of India’s total electricity generation. relationship with Russia for natural resources
Just over a week ago, the European Commis- like oil and coal,” adding that “the White House
sion in Brussels pushed for a total ban on Russian has fired two warning shots to date, pressuring
coal imports by the European Union bloc as part India to be on the right side of history, and avoid
of ongoing sanctions against the government of aligning with Russia. There likely won’t be a third
Vladimir Putin. if this persists.”
Asian powerhouses Japan and South Korea As a result, many in the US and European
have also moved away from Russian imports in Union will be looking to a visit planned by US
recent weeks by working to reduce, and in the ally Boris Johnson, the UK Prime Minister, for
case of Japan, move towards an outright ban on Friday, April 22 to see if he will be able to bring
imports of Russian coal and oil. India into line with global efforts to bring about
Russia is now the world’s sixth-largest coal an end to the war in Ukraine.
producer and in 2020 around 54% of all exports Kapadia went on to hint that the US might
went to Asia, although prior to 2021 just 2% of ultimately consider sanctions against the gov-
India’s own coal imports came from Russia. A ernment of Narendra Modi in New Delhi should
further 31% of coal exported by Moscow went India not cut back or even cease purchases of oil
to nations in the neighbouring European Union. and coal from Moscow.™

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