Rosneft and Reliance Sign Major Crude Oil Agreement

Rosneft, Russia's state-owned oil company, has entered into a major agreement to provide Indian private refiner Reliance with approximately 500,000 barrels of crude oil daily. This transaction is hailed as the largest energy deal ever between Russia and India. Valued at an estimated $13 billion annually based on current pricing, the ten-year contract underscores the deepening energy ties between the two nations.

The deal emerges as a strategic win for Russia amidst stringent Western sanctions due to its military actions in Ukraine. While Rosneft has not responded to requests for comments on the deal, Reliance conveyed that its engagements with international suppliers are determined by prevailing market conditions. The company chose not to elaborate on the specifics of its commercial dealings.

This development coincides with the anticipated visit of Russian President Vladimir Putin to India. Since the European Union, previously the largest buyer of Russian crude, imposed sanctions on Moscow, India has stepped up as the top importer. Unlike the EU, India has not sanctioned Russian oil, allowing its refiners to benefit from the lower-cost crude.

The Indian market is fiercely contested among oil producers globally, as it is one of the fastest-growing energy markets and increasingly influential in shaping global demand. This is particularly notable given the slowdown in demand growth from China, the world's leading importer.

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