Tata Steel Purchases coal from Russia after pledging to cut business ties

In April, Tata Steel, India’s top steel maker, had announced that all its manufacturing units in the UK, India, and Netherlands had sourced substitute raw materials supplies to end its dependency on Russia. The company further stated that the decision taken is a conscious decision to end business ties with Russia.

However, according to a credible source, Tata Steel imported approximately 75,000 tons of coal from Russia in May, which is weeks after pledging to end doing business with Russia.

The 75,000 tons of PCI coal used in steel were shipped from Vanino port of Russia, out of the total coal 42,000 tons were unloaded in a port situated in Paradip on 18th of May and 32,500 were offloaded in Haldia.

A spokesperson for Tata Steel informed that the deal to ship coal from Russia was signed much before the company's announcement to cut ties with Russia. However, the spokesman further said that there had been no other PCI Coal purchase by the company from Russia after the announcement.

India has not stopped purchasing from Russia though, with which it has deep-rooted political ties. The country instead defended its business relations and Russian product purchases as a bid to diversify supplies and suggested that the sudden freeze would propel prices and hurt numerous consumers.

Moreover, Tata Steel is the only steelmaker giant to cut business ties with Russia. Other Indian steelmaker companies have been importing huge amounts of coal from Russia.

Russian traders are offering up to 30% discount on coal purchases. As a result, the purchase of Russian coal by the Indian steelmakers has spiked in recent weeks irrespective of Western sanctions on Moscow.

The supply of cheap coal is essential to Indian steelmakers now, as they are struggling from heavy export duties imposed by the government of India to curb local inflation.

Source Credit: https://www.businesswire.com/news/home/20220620005026/en/Dxcover-Launches-Infrared-Platform-Ground-Breaking-Technology-for-Faster-Sample-Analysis