The private Indian oil refining company Reliance has signed a long-term contract with the Russian state company “Rosneft” for the supply of oil. About this informs Reuters.
This agreement became the largest between India and Russia in the energy sector. Its signing took place on the eve of the visit of the President of the Russian Federation Vladimir Putin to India.
The contract is designed for 10 years and provides for the supply of approximately 500,000 barrels of Russian oil per day to Indian refineries, which is about 0.5% of the world supply. The total value of the deal is estimated at $13 billion annually at current market prices.
According to the agreement, Rosneft will supply 20-21 Aframax-type tankers every month, carrying 80,000 to 100,000 tons of oil, as well as three batches of fuel oil with a volume of about 100,000 tons each. All raw materials will go to the world’s largest oil refining complex, located in the state of Gujarat in the west of India.
This agreement covers about half of Rosneft’s seaborne oil exports from Russian ports. Currently, Russian oil accounts for more than a third of India’s energy imports. After the introduction of EU sanctions on the import of Russian oil in response to the invasion of Ukraine in 2022, India became its largest buyer.
