India increases Russian coal imports

In the first half of 2025, Russian exports of thermal coal to India rose sharply by 33%, reaching 4.3 million tonnes, according to an industry report by the Indian consultancy Bigmint. During the same period, India’s total imports of thermal coal amounted to 89 million tonnes—a 4% decrease compared to the first half of 2024. Despite the overall decline in coal imports, Russia’s share of the Indian market increased from 3% to 5% year-on-year, making it the country’s fourth-largest supplier of thermal coal. Indonesia remained the largest supplier, delivering 51.9 million tonnes, followed by South Africa at 18.9 million tonnes and the United States with 7.4 million tonnes.

Several factors are credited for the renewed demand for Russian coal. Chief among them are the consistently competitive prices and the relatively high calorific value of Russian supply, which make it an attractive option for Indian buyers. In addition, transshipment tariffs at certain ports have been lowered, reducing logistical costs, while supply disruptions in Australia—particularly storm damage and closures at Newcastle Port—have created a temporary gap in the market. These disruptions have contributed to a regional rebalancing of coal flows, in which Russia has sought to consolidate its foothold in South Asia.

India’s rapidly growing economy continues to require vast amounts of energy, and coal—though increasingly controversial for environmental reasons—still accounts for over 70% of its electricity generation. Consequently, access to affordable and reliable coal remains a priority, particularly during periods of peak demand or when domestic production is insufficient. Russian suppliers have been able to offer coal at discounted rates, often 10–20% below prices from Australia or Indonesia, further sweetened by favourable payment terms and less stringent conditions regarding delivery and contracts.

Source: Market Power