Leading international refiner intends on purchasing Russian oil in rubles

(MENAFN) In a significant move that underscores shifting dynamics in the global oil trade, Reliance Industries, India's largest private corporation, has inked a groundbreaking agreement with Russian energy giant Rosneft. According to reports from Reuters citing sources familiar with the matter, the deal entails a one-year contract for monthly supplies of up to three million barrels of oil, all to be settled in Russian rubles.

Under the terms of the agreement, Reliance Industries will purchase two shipments of Urals crude initially, with the flexibility to acquire an additional four shipments each month at a discounted rate of $3 per barrel compared to the Middle East Dubai benchmark. Furthermore, the deal includes provisions for the purchase of up to two shipments per month of low-sulfur crude oil, with a premium of $1 per barrel over Dubai quotes.

This landmark agreement not only signifies a strategic partnership between two industry giants but also underscores India's increasing reliance on Russian crude oil. With Western buyers scaling back purchases in response to geopolitical tensions surrounding Ukraine-related sanctions, Russia has been compelled to explore alternative markets. Offering substantial discounts on crude oil has been a key strategy to attract new buyers and offset the impact of lost trade partners.

Facilitating the transactions will be India's HDFC Bank and Russia's Gazprombank, reflecting a collaborative effort between the two nations' financial institutions. The utilization of Russian rubles for settlement marks a departure from conventional practices and highlights the evolving nature of global trade relationships.

For Reliance Industries, renowned for operating the world's largest refining complex in Jamnagar, this agreement presents both strategic advantages and commercial opportunities. By diversifying its crude oil sources and capitalizing on discounted rates, the company stands to enhance its competitive edge in the global market while ensuring a stable supply chain.

Moreover, the deal between Reliance Industries and Rosneft is likely to have broader implications for the global oil trade landscape. As geopolitical tensions continue to influence traditional trading patterns, such agreements between major players from different regions could reshape market dynamics and foster new alliances.

In essence, the collaboration between Reliance Industries and Rosneft symbolizes a strategic alignment between India and Russia in the energy sector. Beyond immediate economic considerations, it underscores the geopolitical interplay and the quest for energy security in an increasingly volatile world. As both countries navigate the complexities of the global energy market, partnerships like these are poised to shape the future of the industry.



Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.