Mukesh Ambani signs in one year contract with Russia’s Rosneft on Tuesday, May 28, reported the Reuters. India is the third largest oil importer who would now take a lead on purchasing seaborn Russian crude oil after the West stops buying it after Russia Ukraine War in 2022. .
Reliance Industries Limited is to sign around 3 million barrels of oil per month in roubles, Reuters reported. The deal is signed after Russian President Vladimir Putin pushed Moscow and its trading partner to find alternatives to the western financial system to facilitate trade despite US and European investment. Dealing with Rosneft will help the Reliance Company to secure oil at discounted rates. OPEC+ (Organization of the Petroleum Exporting Countries) group of oil producers is to extend voluntary supply after the month of June. According to the terms and conditions of the deal, Reliance would but 2 cargoes of about 1 million barrels of Urals crude with an option to buy 4 more each month at a discount of $3 a barrels to the Middle East Dubai benchmark, according to the sources. Reuters on asking the questions, the Russian Company answered to the question over E- mail, “India is a strategic partner for Rosneft oil company”. It added that it does not comment on confidential agreement.
“Cooperation with Indian companies includes project in the field of production, oil refining and trading of oil and petroleum products”. Reliance agrees to pay for oil using Russia’s rouble through HDFC bank. This opens new tab (GZPRI.MM). The OPEC+ group – Organization of the Petroleum Exporting Countries (OPEC) and allices including Russia is to hold an online conference on June 2 to discuss important transaction related matter.
India made payments in rupees, dirhams, and Chinese yuan for the Russian oil. Earlier in the month of May the Central government had asked state – run oil refiners and Reliance Industries Limited to jointly carry out long term deals with Russia. The government intends to lock 33 % of crude oil supply from Russia by the state refiners at a fixed discount rate which would facilitate India’s economy.
Author: Anushka Jaiswal
Anushka Jaiswal is pursuing a degree in journalism and Mass Communication. I am more interested in listening to the podcast rather than reading books. My hobbies include listening to music, journaling philosophical thoughts. From my school days I have taken a keen interest in debate competitions whether it is English or Hindi. I am not much indulged in the sports but I remain active in some of the co curricular activities like cycling, swimming, running, jogging and the like.
