Despite global sanctions against Russia, India’s purchases of Russian coal have increased in recent weeks, with traders offering discounts of up to 30%, according to two trade sources and data reviewed by Reuters.
Russia, which is facing harsh Western sanctions for its invasion of Ukraine, warned the European Union in April that sweeping sanctions on coal would backfire because the fuel would be diverted to other markets.
While calling for an end to the violence in Ukraine, India has refrained from condemning Russia, with which it has long had political and security ties. New Delhi defends its purchases of Russian goods as part of an effort to diversify supplies, claiming that a sudden halt would raise global prices and harm its consumers.
US officials have told India that there is no ban on Russian energy imports, but they do not want a ‘rapid acceleration.’
Despite the fact that European importers avoid doing business with Moscow, Indian buyers are snapping up massive amounts of Russian coal despite high freight costs.
According to unpublished Indian government data reviewed by Reuters, its purchases of coal and related products increased more than sixfold in the 20 days through Wednesday compared to the same period a year ago, to $331.17 million.
Similarly, Indian refiners have purchased cheap Russian oil that Western countries have avoided. According to the data, the value of India’s oil trade with Russia in the 20 days leading up to Wednesday increased more than 31 times to $2.22 billion.
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