India to tap into Russia’s undeveloped coal, iron ore deposits

India plans to expand the scope of its current investments in the Russian commodity market by helping the European nation developed its large coal and iron ore reserves, as well as boosting Russia’s fertilizers sector, local media reported.

During the 5th meeting of the India-Russia Working Group on Modernization and Industrial Cooperation, both sides also identified other fields for potential cooperation, including the modernization of steel manufacturing facilities in India and participation of Indian power equipment supplier in upgrading Russia’s power sector, Economic Times reports.

New Delhi has stepped up efforts this year to grab major stakes in Russian mining and energy companies. In March, a group of Indian state firms grabbed about 50% of a Siberian oil field run by Russia’s main crude producer, Rosneft.

Three months later, India’s Oil and Natural Gas Corporation said it would allocate a total of $5 billion this year to speed up its projects in Russia, Sputnik News reported.

India’s total investment in Russia’s oil and gas sectors could reach $15 billion over the next four years, Minister of Industry and Commerce Nirmala Sitharaman said last month, RT reported.

According to Sitharaman, New Delhi injected $8 billion into the Russian energy sector prior to 2015, while Moscow’s investments in India totalled $3 billion.

Behind the transactions, there is India’s interest in securing supply of coal, liquefied natural gas (LNG), diamonds and fertilizers from Russia.