Russia’s state-owned energy giant Rosneft has struck a massive deal with India’s private oil refiner Reliance Industries. This agreement, worth an eye-popping $13 billion annually, will see Rosneft supplying nearly 500,000 barrels of crude oil every single day to Reliance, making it the biggest oil deal ever between the two nations.
So, what’s in the deal?
Under this agreement, Rosneft will deliver 20-21 cargoes of crude oil every month, each carrying between 80,000 to 100,000 metric tons of oil. That’s not all—an additional three shipments of fuel oil, totaling about 100,000 tons each, will also be sent monthly. These shipments will head to Reliance’s giant oil refining complex in Jamnagar, Gujarat—the largest refinery of its kind in the world.
This arrangement kicks off in January and comes with a unique feature: the pricing and volumes will be reviewed every year. On top of that, both parties have the option to extend this deal for another ten years if it proves successful.
What’s the Catch?
The majority of the oil supplied under this deal will be Russian Urals crude, a type of medium-sulfur, diesel-rich oil. For Reliance, this type of crude will come at a significant discount—$3 less per barrel compared to Dubai prices in 2024. For lighter, sweeter grades of crude like ESPO and Sokol, Reliance will pay a small premium of $1.50 to $2 per barrel.
Why does this matter? The deal will account for half of Rosneft’s total seaborne oil exports and around 0.5% of the global oil supply.
India and Russia: A Growing Energy Alliance
This isn’t Reliance’s first transaction with Rosneft. Earlier this year, Reliance purchased three million barrels of Russian crude each month. What makes this new agreement different is its size and scope—solidifying the already deep energy ties between Moscow and New Delhi.
Russia’s ambassador to India, Denis Alipov, highlighted that Russia has now become India’s largest oil supplier, meeting nearly 40% of the country’s total crude imports. In fact, Russian oil exports to India doubled last year, hitting a staggering $45 billion in value.
Why This Deal Matters for India
India is the world’s fifth-largest economy and ranks third globally in oil consumption. It has been steadily increasing its purchases of Russian oil since the Ukraine conflict reshaped global energy markets. With Western sanctions limiting Russia’s energy exports to Europe, Moscow has redirected its supply to Asian countries like India.
Reliance, India’s largest private-sector company, and a Fortune 500 heavyweight benefits hugely from this partnership. The Jamnagar refinery will now have a steady, discounted supply of high-quality crude, which could help India manage its growing energy demands more efficiently.
A Win-Win for Both Sides
For Russia, this deal helps maintain steady oil exports despite international sanctions. For India, it ensures access to affordable energy—a key requirement for its booming economy.
As global energy markets shift, deals like this highlight how countries are forging new alliances to secure their energy future. India and Russia are clearly becoming stronger partners, and this $13 billion deal is just the beginning of a deeper collaboration.
