India To Buy Russian Oil In Roubles

Reuters has reported that Indian company Reliance Industries will buy Russian oil in roubles and is also able to acquire the oil at a discount.

India To Buy Russian Oil In Roubles 1

Four people with knowledge of the situation told Reuters that Russia’s Rosneft and India’s Reliance Industries, which runs the largest refining complex in the world, have agreed on a one-year purchase agreement for at least 3 million barrels of oil per month in roubles.

To support commerce despite sanctions imposed by the US and Europe, Russian President Vladimir Putin has pushed Moscow and its trading partners to develop alternatives to the Western banking system. This has led to the switch to rouble payments.

Private company Reliance is also able to acquire oil at a discount thanks to a term arrangement with Rosneft at a period when the OPEC+ group of oil producers is anticipated to prolong voluntary production curbs past June.

On June 2, an online meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, is scheduled to debate the output restrictions.

Following the West’s suspension of sales and imposition of sanctions on Moscow following Russia’s invasion of Ukraine in 2022, India—the third-largest oil importer and consumer in the world—has emerged as the primary purchaser of Russian petroleum transported by sea. Additionally, India has paid for Russian oil using Chinese yuan, dirhams, and rupees.

Meanwhile, because they were unable to finalize term supplies for this year, state-owned Indian refiners have been turning to the spot market for Russian oil, as previously reported by Reuters.

Recently, GreatGameIndia reported that the new U.S. sanctions imposed on Russia, in reaction to the death of opposition leader and anti-corruption advocate Alexey Navalny, are jeopardizing India’s oil supply from Russia.

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