The Russian company will provide 500 thousand barrels (0.5% of global supplies) of oil of various grades every day for 10 years.
An agreement was concluded between the Russian company Rosneft and the Indian private oil refiner Reliance on oil supplies for 10 years. Reuters reported this, citing three interlocutors.
The largest energy agreement in history between the two countries assumes that the Russian company will provide 500 thousand barrels (0.5% of global supplies) of oil of various grades daily for 10 years. The value of the transaction is estimated at US$13 billion per year at current prices.
Reliance said it works “with international suppliers, including from Russia, and transactions are based on market conditions.”
It was noted that the agreement was finalized on the eve of Russian dictator Vladimir Putin’s planned visit to India.
As you know, Russian oil accounts for more than a third of India’s energy imports. The country became Russia’s biggest oil importer after the European Union, once its biggest buyer, imposed sanctions on Russian oil imports in response to Russia’s invasion of Ukraine in 2022.
India has no sanctions against Russian oil, so oil refiners there profit from cheaper crude oil from the Russian Federation. The sanctions have made Russian oil cheaper than competitive brands by at least $3-4 per barrel.
It was earlier reported that India’s state-owned oil refiners are conducting joint negotiations with Russia on a long-term oil import agreement.
Let’s recall that India’s oil imports from Russia rose in May to a record 2.1 million barrels per day, linked to a drop in China’s demand for Russian oil.
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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.