On October 27, Russian Energy Minister Sergey Tsivilyovo revealed Moscow's plan to sharply increase coal exports to India, with a target of 40 million tons by 2035. He affirmed that India is a major customer of the Russian coal industry.
The move comes as Russia is actively seeking and strengthening new markets in Asia for its energy products, after Western sanctions related to the conflict in Ukraine have significantly reduced access to traditional European markets. India, along with China, has emerged as an important Russian energy buyer, often benefiting from discounted prices.
Previously, Russian Deputy Energy Minister Dmitry Islamov also emphasized that the main prospects for Russian coal exports are China, India and Africa.
According to Mr. Islamov, the main potential for the sale of thermal coal (mainly used for electricity production) is in China, while the main market for cup coal (used in steel production) is India. This shows Russia's strategic allocation of different types of coal to different markets based on the industrial needs of each country.
Currently, Russia has affirmed its position as one of the leading coal suppliers to the Indian market. To better exploit this potential market and strengthen its position, Moscow has taken a strategic step: Proposing India to sign a government-level cooperation agreement in the coal sector. The deal would make it easier for Russia to sell coal for processing to India and ensure a stable supply of thermal coal.
Russia's desire to sign a government-level agreement shows Moscow wants to cooperate long-term and seriously with New Delhi, not just for normal trading. For Russia, achieving this agreement is very important, ensuring a large and stable market for coal for many years, and having to worry less about other markets.
