Rosneft, Reliance Sign India’s Biggest Ever Oil Supply Agreement

Russian petroleum refineries company Rosneft has entered into an agreement with Reliance Industries to supply 500,000 barrels of crude oil on a daily basis. This marks the biggest ever energy deal between the two countries.

Valued at $13 billion (based on current prices) a year, the agreement lasts for 10 years, with an option to extend for 10 more years. The deal would further strengthen relations between India and Russia at a time when the latter is reeling through heavy sanctions since the invasion of Ukraine.

As per the sources, Rosneft is expected to deliver 20-21 Aframax-sized cargoes (80,000 to 100,000 metric tonnes) of various Russian crude grades and three cargoes weighing 100,000 tons each of fuel oil per month

Notably, the deal comes ahead of the Russian President Vladimir Putin’s visit to India. US President-elect Donald Trump said he is looking forward to ending the conflict as soon as he takes charge.

Currently, India is the largest importer of Russian Crude oil after the European Union (EU). A third of its energy requirements are dependent on Russian oil.

Interestingly, sanctions have made Russian oil cheaper by $3 to $4 per barrel. India has already cashed in on this opportunity as the country has not imposed any sanctions on Russian oil.