India set to become Russia’s top coal buyer by 2030

Russia's coal exports to India are poised to increase in the coming years, with the South Asian nation expected to become the largest purchaser of Russian coal by the start of the next decade. This shift comes as China, currently Russia’s biggest buyer, moves to reduce coal-fired power generation in the country.

In an interview at the Eastern Economic Forum in Vladivostok, Russian Energy Minister Sergei Tsivilev shared his projections for the coal market. He noted that in 2023, Russia exported 262 LMT (Lakh Metric Tons) of coal to India, up from 200 LMT in 2022 but still nearly four times less than Russia exports to China.

However, Mr. Tsivilev anticipates that India will be the primary purchaser of Russian coal by 2030. Looking further ahead, he predicts that within the next two decades, Southeast Asian countries such as Taiwan and Vietnam will account for the majority of Russian coal exports.

The minister highlighted the growing demand for coking coal in India, which is driven by the country's expanding steel industry. This trend is expected to draw more of Russia's metallurgical coal exports to the Indian market.

India's ambitious plans for coal-fired power generation are fuelling this shift. The country has announced its intention to increase coal power capacity by approximately 90 gigawatts by 2032, surpassing previous forecasts by more than 50%. By 2030, coal is projected to account for roughly 54% of India's electricity production.

Source: TASS