NEW DELHI – Russia’s Rosneft has signed a landmark agreement with India’s Reliance Industries to supply 500,000 barrels per day (bpd) of crude oil for the next 10 years. Valued at approximately $13 billion annually, the deal secures Russia’s access to global markets through India amidst Western sanctions.
The partnership is a win-win arrangement for both nations. India will procure crude oil at a competitive price, enabling its refineries to process the oil and sell refined products at a premium in international markets, including Europe. For Russia, this agreement provides a vital workaround for restrictions imposed by the European Union, which has banned Russian crude imports due to the Ukraine conflict.
The crude supplied under this agreement can be redirected to Europe and other regions after refining, boosting India’s oil exports and strengthening its position as a global refining hub. Reliance, which operates the world’s largest refining complex in Jamnagar, is well-equipped to refine the crude and cater to the increasing global demand for fuel.
Industry experts estimate the deal will not only fortify energy cooperation between the two nations but also allow Russia to maintain steady crude exports despite the sanctions. India, as the world’s third-largest oil importer and refiner, stands to benefit significantly by securing a consistent and affordable oil supply, bolstering energy security amid volatile global prices.
Neither Rosneft nor Reliance has officially disclosed the pricing terms of the agreement, but analysts believe it reflects a strategic alignment to bypass geopolitical barriers while maximizing economic returns.