As Moscows military operation in Ukraine falters against a counteroffensive, war chest revenues from fossil fuels might take another hit as Indias imports of Russian thermal coal look set to fall for the very first time in four months.
In an email to clients cited by Reuters, Coalmint now says it expects Indias September imports of Russian thermal coal to stop by 30% from the prior month to at least one 1.4 million tonnes.
Another consultancy, DBX Commodities, told Reuters that Indian shipments of power generation fuel should drop from 1.9 million tonnes in August to at least one 1.5 million tons in September.
In June, Indias imports of thermal coal from Russia hit an all-time high, and in July, Russia earned status because the third-largest supplier of coal to India.
On Wednesday, Reuters cited an unnamed Indian source as saying that India has imported some $2.4 billion worth of Russian coal because the invasion of Ukraine in late February, representing a value four times greater than the same amount of 2021.
This is a challenging time for more losses to the war chest, that is heavily funded by fossil fuels and incredibly influenced by sales to India and China.
The brand new estimations of Indias reduced coal imports from Russia come just over 8 weeks from the implementation of a EU ban on Russian seaborne crude oil and a well planned price cap on Russian oil by the G7.
With the recent defeat in Ukraines Kharkiv, where Russian troops were pushed back and lost large swathes of territory, Russian President Vladimir Putin is currently under severe pressure to keep top of the hand. Up to now, this has led to the first demand troop mobilization since World War II, resulting in mass protests and arrests in Russia, while conscription-age men try to flee the united states in droves.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com: