Russia and India have signed their largest-ever oil supply deal
13.12.2024 - 12:23
India and Russia have agreed their largest-ever oil supply deal.
Russian state oil company Rosneft has agreed to supply nearly 500,000 barrels of crude oil per day to Indian private refiner Reliance, Reuters reported.
It is the largest energy deal between the two countries, three sources familiar with the deal said. The 10-year deal covers 0.5% of global supplies and is worth about $13 billion a year at current prices.
It will further strengthen energy ties between India and Russia, which is under Western sanctions over its invasion of Ukraine.
Reliance signed a deal with Rosneft this year to buy 3 million barrels of oil per month. Rosneft also regularly sells Reliance oil through intermediaries. The new deal accounts for about half of Rosneft’s seaborne oil exports from Russian ports.
From January to October, Reliance imported an average of 405,000 barrels of Russian oil per day, up from 388,000 barrels per day in the same period last year.
Deliveries will begin in January and will last for 10 years, with the option to extend the agreement for the same period.
