Reliance Industries set to sign one-year oil deal with Russia’s Rosneft

Reliance Industries, India’s operator of the world’s largest refining complex, has reportedly sealed a one-year agreement with Russia’s Rosneft to purchase at least 3 million barrels of oil per month in roubles, according to four sources familiar with the matter cited by Reuters.

The transition to rouble payments comes in the wake of Russian President Vladimir Putin’s call for Moscow and its trading partners to explore alternatives to the Western financial system for trade facilitation, despite U.S. and European sanctions.

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This term deal with Rosneft also enables Reliance, a privately held conglomerate, to secure oil at discounted rates, particularly amid expectations that the OPEC+ alliance, including OPEC and its allies such as Russia, will extend voluntary supply cuts beyond June. The OPEC+ group is slated to discuss output cuts in an online meeting scheduled for June 2.

“India is a strategic partner for Rosneft oil company,” the Russian firm stated in an email response to Reuters, emphasizing its collaborative efforts with Indian companies in various sectors, including production, oil refining, and trading of oil and petroleum products. However, Rosneft declined to comment on confidential agreements with partners and asserted that commercial approaches to determining crude value remain consistent across companies, irrespective of private or state-controlled status.

Reliance, on the other hand, refrained from responding to requests for comments.