Payments to Russian suppliers through prevailing banking channels continue to be a concern due to economic sanctions
Payments to Russian suppliers through prevailing banking channels continue to be a concern due to economic sanctions
Tata Steel Ltd, one of the major importers of Russian coal in recent months, has decided to stop buying from the country, citing “uncertainties” on supplies following international sanctions imposed on it after Ukraine’s invasion.
A Tata Steel spokesperson said in a statement, “To ensure business continuity, we have made alternative supplies of raw materials, as transactions with Russian suppliers and bankers currently come with a lot of uncertainties as a result of international sanctions imposed on Russia. is.”
Although companies in India, like their counterparts in many Western countries, are still procuring crude oil and coal from Russia at subsidized prices to meet their needs, payments to Russian suppliers through existing banking channels are economic. The restrictions remain a matter of concern.
Although there are no restrictions on coal imports from Russia, Tata Steel is believed to have decided to maintain its operations through reliable supplies from abroad at a time when coal shortage threatens to disrupt energy production in India. .
Kamlesh Bagmar said, “We believe there will be no impact as the company has a very diversified procurement mechanism with supplies from Mozambique into Australia. The shortfall is likely to be offset by increased supplies from the US and other markets.” is.” Deputy Head of Research at Prabhudas Lilladher.
Shares of Tata Steel rose 1.84 per cent to Rs 1,295.10 per share on the BSE on Monday, after the Sensex lost 0.15%.