Negotiations that have been ongoing since at least the beginning of February ended without results, sources told Bloomberg.
Rosneft failed to conclude long-term contracts with India’s largest oil refinery for the purchase of 500 thousand barrels per day. Bloomberg reported this, citing six industry sources.
Negotiations that have been ongoing since the beginning of February ended without results. State-owned refiners Bharat Petroleum and Hindustan Petroleum have decided not to make firm purchase commitments from Russia’s largest oil company in the next financial year.
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India’s oil market leader, Indian Oil Corp. which is state-owned, already has a long-term contract with Rosneft and Gazprom Neft for the supply of 24.5 million tons of raw materials. However, the company is likely to reduce purchase volumes this year.
According to Bloomberg sources, the stumbling block in the negotiations is a clause in the contract that deals with possible disruptions in imports from Russia. Rosneft’s cold response to this condition dampened the interest of Indian refineries.
India became the second largest buyer of Russian oil after Russia’s invasion of Ukraine. At its peak in May 2023, supplies reached 2.15 million barrels per day, nearly 30 times higher than pre-war levels. Exports began to fall in the fall, and in January they dropped to 1.5 million barrels per day.
The American sanctions, which affected Russian “shadow” tankers, had an effect. In January, India refused to accept 14 ships carrying Sakhalin oil, and Rosneft’s attempt to solve the problem by opening an account in dirhams turned out to be a failure – the banks in Dubai refused to process of payments.
India replaces Russian oil with Saudi oil: in February, supplies from Saudi Arabia to the Indian market increased by 22%, and the largest private oil refining company Reliance Industries received the highest volume since May 2020.
Let’s remember that Turkey’s largest player in the transshipment of Russian oil, Global Terminal Services, which received record volumes in 2023, has completely closed operations here.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.