In the midst of the Ukraine conflict, India’s coal imports from Russia may reach a two-year high1 min read
India’s coal imports from Russia may be at an all-time high in more than two years. Until March 20, 870,000 tonnes of Russian coal are slated to arrive on Indian coastlines. If additional coal had been loaded at Russian ports since mid-February, the figure would be higher. A number of Russian banks have been disconnected from the SWIFT secure messaging system, which allows for cross-border payments. Following Russia’s invasion of Ukraine, at least three coal-carrying ships sailed from Russian ports to India.
Indian purchasers are still importing coal from Russia, but it is becoming increasingly difficult since banks are unwilling to grant letters of credit. India is looking at methods to establish up a rupee payment channel with Russia in order to mitigate the impact of Western sanctions imposed on Russia on New Delhi.