Rosneft Signs Record Crude Oil Supply Deal with India's Reliance

Russia's state oil company Rosneft has signed a significant agreement to supply approximately 500,000 barrels of crude oil daily to India's private refinery Reliance. This transaction is regarded as the largest energy deal to date between Russia and India. The ten-year contract, estimated to be worth $13 billion annually at current prices, underscores the deepening energy ties between the two countries.

The agreement emerges as a strategic victory for Russia in the context of stringent Western sanctions imposed due to Russia's military actions in Ukraine. While Rosneft did not respond to requests for comments regarding the deal, Reliance stated that its relationships with international suppliers are determined by current market conditions. The company preferred not to disclose details about its commercial agreements.

This development coincides with Russian President Vladimir Putin's anticipated visit to India. Since the European Union imposed sanctions on Moscow, which was previously the largest buyer of Russian crude oil, India has become the largest importer. Unlike the EU, India has not enacted sanctions on Russian oil, allowing its refineries to benefit from lower-cost crude.

The Indian market is experiencing intense competition among global oil producers due to its status as one of the fastest-growing energy markets in the world and its increasing influence in shaping global demand. This is particularly noteworthy given the slowdown in demand growth from China, the world's largest importer.