According to data, Russia became India’s third-largest coal supplier in July.

According to figures from the Indian consultancy Coalmint, Russia became India’s third-largest coal supplier in July, with imports increasing by more than a fifth compared to June to a record 2.06 million tonnes. Russia has traditionally been India’s sixth-largest coal exporter, trailing Indonesia, South Africa, Australia, and the United States, with Mozambique and Colombia alternately being in the top five.

India expects its central bank’s recent clearance to allow commodity payments in Indian rupees to deliver a significant boost to bilateral trade with Russia. Since Russia’s invasion of Ukraine, India’s imports from Russia have increased nearly fivefold to more than $15 billion.India, the world’s second-largest producer, importer, and user of coal, has historically imported more coking coal from Russia, with Australia serving as the other major source.

However, steep discounts offered by Russian suppliers to Indian consumers in recent months have encouraged increased purchases of thermal coal, which is primarily used in power generation, especially as global prices have traded at near-record highs due to Western sanctions choking traditional trade.

Thermal coal imports from Russia increased 70.3 percent year on year in July to a record 1.29 million tonnes, while coking coal imports increased by more than two-thirds to more than 280,000 tonnes, according to Coalmint data.

According to the data, Indonesia was the leading supplier, while South Africa was just ahead of Russia. According to two Indian traders, increased Russian coal imports were mostly driven by cement and steel firms.

Overall Indian coal imports, including anthracite and PCI coal, were nearly 10% lower in July, at 23.8 million tonnes, compared to a record 26.29 million tonnes in June, according to Coalmint data.