Reliance Industries enter deal with Russia’s Rosneft to buy oil in Rubles: Report

Reliance Industries, the operator of world’s biggest refining complex, has signed a one- year deal with Russia’s Rosneft to buy at least 3 million barrels of oil a month in Rubles, as per the reports by Reuters, citing sources aware with the development.

The shift to Ruble payments comes amid the heavily sanctioned Russia’s president Vladimir Putin’s effort to change the dynamic of international trade between Moscow and its trading partners from the Western financial system.

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This agreement will also help Reliance to acquire oil at discounted rates at a time when OPEC+ group of oil producers is expected to extend voluntary supply cuts beyond June.

The OPEC+ group, which includes Organisation of the Petroleum Exporting Countries and Russia, are scheduled to held an online meeting  on June 2, to discuss the output cuts.

India, the world’s third biggest oil importer and consumer, has become the biggest buyer of seaborne Russian crude oil since Western and Europeans have halted purchase from Russia owing to the sanctions, which were in wake of Russia’s invasion of Ukraine. India has also paid for Russian crude in rupees, dirhams, and Chinese yuan.