Russia and India Sign Big Oil Deal
India’s Reliance company has signed a 10-year contract with Russia‘s state-owned oil firm Rosneft. This is the largest energy deal between the two countries.
The agreement will see Rosneft supply around 500,000 barrels of crude oil per day to Reliance. This is about 0.5% of the world’s total oil supply and worth around $13 billion a year.
India buys more Russian oil than any other country since Western sanctions were put in place. Russian oil now makes up over one-third of India’s energy imports.
The contract will start in January and run for 10 years, with an option to extend for another 10 years. The price will be reviewed every year based on the current market conditions.
India and Russia have a long history of cooperation on trade, defense, energy, and technology. Their bilateral trade is expected to reach $100 billion by 2030.
A Reliance spokesperson said that they work with oil suppliers from all over the world, including Russia, and make deals based on market conditions.