Two major Indian state-owned companies, Steel Authority of India (SAIL) and NMDC, are planning to acquire assets of Russian coal companies that produce coking coal, which is essential for the metallurgical industry.
In May this year an Indian delegation visited Russia for preliminary talks with representatives of industry and the government. SAIL also has a special committee that is studying issues related to the purchase of raw materials and assets. Previously, Indian state-owned companies had shown interest in the possibility of buying coal enterprises in Australia and Indonesia.
Today India remains the second-largest importer of Russian coking coal, giving the lead to China and covering a significant share of its coal raw material needs through supplies from Russia. In the spring of this year India’s Deputy Minister of steel, Sandip Poundrik outlined plans to increase coal supplies from Russia two to three times, provided the price and quality are suitable.
Sanctions, disruptions in logistics chains and falling global prices are negatively affecting Russia’s coal industry. This is being felt especially strongly in the Kemerovo Region – Russia’s main coal-mining area. In April the governor of Kuzbass Ilya Seredyuk described the industry as being in a brutal crisis and stressed that the region has been operating under extremely difficult conditions for the third year in a row: coal company revenues are declining, and there is widespread shutdown of coal production.
More than 150 coal-mining enterprises operate in the Kemerovo Region, accounting for nearly half of all coal production in Russia. According to forecasts, losses of Russian coal companies could exceed 500 billion rubles by the end of 2026, and only rising prices and a weaker ruble could help save the situation.
Source: India has shown interest in buying Russian coal companies: Business: Economy: Lenta.ru
In May this year an Indian delegation visited Russia for preliminary talks with representatives of industry and the government. SAIL also has a special committee that is studying issues related to the purchase of raw materials and assets. Previously, Indian state-owned companies had shown interest in the possibility of buying coal enterprises in Australia and Indonesia.
Today India remains the second-largest importer of Russian coking coal, giving the lead to China and covering a significant share of its coal raw material needs through supplies from Russia. In the spring of this year India’s Deputy Minister of steel, Sandip Poundrik outlined plans to increase coal supplies from Russia two to three times, provided the price and quality are suitable.
Sanctions, disruptions in logistics chains and falling global prices are negatively affecting Russia’s coal industry. This is being felt especially strongly in the Kemerovo Region – Russia’s main coal-mining area. In April the governor of Kuzbass Ilya Seredyuk described the industry as being in a brutal crisis and stressed that the region has been operating under extremely difficult conditions for the third year in a row: coal company revenues are declining, and there is widespread shutdown of coal production.
More than 150 coal-mining enterprises operate in the Kemerovo Region, accounting for nearly half of all coal production in Russia. According to forecasts, losses of Russian coal companies could exceed 500 billion rubles by the end of 2026, and only rising prices and a weaker ruble could help save the situation.
Source: India has shown interest in buying Russian coal companies: Business: Economy: Lenta.ru