Negotiations on a long-term agreement on oil imports are already underway, but the parties have not yet agreed on the terms - in particular, in what currency the supplies will be paid for
India's state-owned oil refiners are negotiating with Russia on a long-term agreement on oil imports, Reuters reports citing a government source.
According to the interlocutor, the parties have not yet agreed on the terms of the deal - in particular, the currency in which payment will be made. Indian private refiners may join the talks later, the source said.
In May, Reuters, citing four sources, reported that Reliance Industries had signed an annual contract with Rosneft to buy at least 3 million barrels of oil per month, mostly Urals grade, in rubles. The switch to ruble-denominated payments with foreign partners is Russia's response to Western sanctions, the material noted. ‘Rosneft responded to the agency's enquiry that ‘India is a strategic partner of the oil company’, but added that it does not comment on confidential agreements with partners.’
Russian Deputy Prime Minister Alexander Novak said this week that Moscow and New Delhi were considering a long-term agreement on oil supplies. Indian Prime Minister Narendra Modi visited Russia on 8-9 July.
According to the analytical company Kpler, India imported a record 1.6m bpd of Russian Urals crude in June. The previous record was set in May. Reliance became the largest buyer of Russian crude for the first time since April 2023, importing 545,000 bpd. Thus, the company last month overtook state-owned Indian Oil Corporation, which was usually the top importer of crude from Russia. Most of this volume came from Urals.
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