Russian state-owned oil company Rosneft and Indian refining giant Reliance Industries have finalized a landmark agreement to supply 500,000 barrels of oil daily for the next 10 years, Reuters reported on Dec. 12.
The deal marks the largest energy partnership between the two nations, valued at approximately $13 billion annually at current market prices.
India, now the biggest importer of Russian oil, benefits from discounted grades like Urals, enabling significant cost savings for its refiners.
This agreement also intensifies competition with Middle Eastern oil producers, particularly Saudi Arabia, as they vie for a share of India’s rapidly growing energy market.
While India has maintained its call for a diplomatic resolution to Russia's war against Ukraine, it continues to deepen economic ties with Moscow.
Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin in Moscow in July. The two countries identified nine areas for enhanced cooperation, ranging from nuclear energy to medicine.
India and Russia also aim to boost bilateral trade by over 50%, targeting $100 billion annually by 2030.
Martin Fornusek
(Updated: )
