Reliance Industries has reportedly entered into a one-year deal with Russia’s primary oil producer, Rosneft. They’ve agreed to purchase a minimum of two shipments of Urals crude monthly, paying in Russian rubles.
According to Reuters, the agreement effective from April 1, 2024, involves purchasing two shipments of approximately 1 million barrels of Russia’s Urals crude per month.
Additionally, there’s an option to acquire four additional cargoes monthly. As part of the deal, the Urals crude is discounted by $3 per barrel compared to the Middle Eastern Dubai benchmark.
In an email response to Reuters, Rosneft said, “India is a strategic partner for Rosneft oil company.”
Indian oil companies have been using Indian rupees, Chinese yuan, and UAE dirhams to buy Russian oil ever since Western nations restricted Russian oil imports. Additionally, there’s a $60 per barrel price limit on Russian crude if Western services are involved.
The refinery also plans to buy one to two shipments per month of low-sulfur crude oil, primarily the ESPO Blend from Russia’s Kozmino port in the Pacific. They’ll pay a bit extra, about $1 more per barrel compared to the Dubai prices.
Last month, Reuters reported that Russia remained India’s top oil provider for the second year in a row. The increase in Russian crude imports led to a drop in India’s reliance on OPEC and Middle Eastern oil to a record low.
According to Reuters analysis, in FY 2023-24 which ended on March 31, India’s oil imports from the Middle East dropped to a record low of 46%. This is down from 55% in the previous financial year 2022/2023.
Similarly, India’s crude oil imports stayed unchanged in the financial year 2023/2024. However, the import expenditure of the world’s third-largest oil importer decreased by nearly 16%, due to reduced oil prices and record-high imports of less expensive Russian crude.
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