Tata Steel Ltd., a major importer of Russian coal in recent months, has opted to halt purchases due to “uncertainties” about supplies as a result of international sanctions implemented after the Ukraine incursion.
“To maintain business continuity, we have secured alternative raw material supply,” a Tata Steel spokeswoman said in a statement, “since transactions with Russian suppliers and bankers currently come with a lot of risks as a result of international sanctions placed on Russia.”
Despite the fact that Indian enterprises, like their counterparts in many western nations, continue to buy crude oil and coal from Russia at reduced costs to meet their needs, payments to Russian suppliers through the existing banking channels remain a worry due to the economic sanctions.
Despite the fact that there is no ban on Russian coal imports, Tata Steel is thought to have decided to keep its operations running by relying on stable supplies from abroad at a time when India’s electricity output is threatened by a coal scarcity.
Tata Steel said it will leave no impact on the company
“We anticipate there will be no impact because the company has a very varied procurement process, with suppliers going from Mozambique to Australia,” says the company. “If there is a shortfall, increased supplies from the US and other markets are likely to make up for it,” Kamlesh Bagmar, deputy head of research at Prabhudas Lilladher, said.
On a day when the Sensex fell 0.15 percent, Tata Steel shares rose 1.84 percent to 1,295.10 per share on the BSE.