Payments to Russian suppliers through the mainstream banking channels remain a problem due to economic sanctions
Payments to Russian suppliers through the mainstream banking channels remain a problem due to economic sanctions
Tata Steel Ltd., one of the biggest importers of Russian coal in recent months, has decided to stop sourcing from the country, citing “uncertainties” about supplies following international sanctions imposed after the invasion of Ukraine.
“To ensure business continuity, we have sourced alternative raw materials as transactions with Russian suppliers and bankers are currently fraught with uncertainty due to the international sanctions imposed on Russia,” a Tata Steel spokesman said in a statement.
Although Indian companies, like their counterparts in many Western countries, still purchase crude oil and coal at discounted prices from Russia to meet their needs, payments to Russian suppliers through the prevailing banking channels remain a problem due to economic sanctions.
Although there was no ban on coal imports from Russia, Tata Steel is said to have made the decision to sustain its operations with reliable supplies from overseas at a time when coal shortages threaten to disrupt power generation in India.
“We believe there will be no impact as the company has a very diversified sourcing mechanism with supplies from Mozambique to Australia. Increased shipments from the US and other markets are likely to make up for the shortage, if any,” Kamlesh Bagmar said. deputy director of research at Prabhudas Lilladher.
Shares in Tata Steel on the BSE rose 1.84% to £1,295.10 per share on Monday, on a day when the Sensex was down 0.15%.
