According to estimates, Tata Steel purchased roughly 75,000 tonnes of coal from Russia in the second half of May, weeks after vowing to quit doing business with the country.
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Two trade sources and one government source claimed India’s leading steelmaker Tata Steel purchased roughly 75,000 tonnes of coal from Russia in the second half of May, weeks after vowing to stop doing business with Russia.
Tata Steel announced in April that it has sought alternative raw materials for all of its manufacturing locations in India, the United Kingdom, and the Netherlands to remove its reliance on Russia and that it had made “a strategic choice to stop doing business with Russia.”
Still, in May, Tata Steel transported roughly 75,000 tonnes of PCI coal, used in steelmaking, from Russia’s Vanino port, with 42,000 tonnes offloaded in Paradip on May 18 and 32,500 tonnes in Haldia, according to two trade sources who did not want to be identified.
Tata Steel’s representative claimed the arrangement to buy coal from Russia was made before the company’s declaration to terminate relations with Russia, but he didn’t elaborate.
“Tata Steel has made no more PCI Coal purchases from Russia since the announcement,” the spokesperson told Reuters in an emailed statement.
India has been silent on Russia’s “special operations” in Ukraine, even though the two countries have long had political connections. Instead, India has justified its purchases of Russian commodities to diversify supply, claiming that a sudden halt would drive up costs and harm consumers.
Tata Steel was the only major steelmaker to say it would quit doing business with Russia. According to trade data by Reuters, other Indian steelmakers have been purchasing large amounts of coal from Russia.
Trade reports show that PCI coal was brought aboard the Panamax Ostria. According to a government source, Tata Steel purchased 75,000 tonnes of coal from Russia in May, but no further information was provided.
