Reliance Industries signs oil purchase agreement with Russia’s Rosneft: Reuters

Reliance Industries, the company that operates the country’s largest refining complex, has signed an oil purchase agreement with Russia’s Rosneft. Reuters has given this information quoting sources. According to the report, this oil purchase deal is for one year and under this, at least 30 lakh barrels of oil is to be purchased every month. Russian currency ruble will be used to buy oil. The deal on payments in rubles comes at a time when Russian President Putin is pushing for Russia and its trading partners to move ahead with alternatives to the Western financial system so that trade can proceed amid US and European sanctions.

Along with this, this deal will ensure supply of oil to Reliance Industries at concessional rates even at a time when oil producing countries will go ahead with cuts to keep the prices at higher levels. OPEC Plus countries will hold a meeting on June 2 regarding reduction in oil production. Russia also comes among the OPEC plus countries along with the countries included in OPEC.

India is the third largest oil importer and consuming country in the world. After the sharp rise in oil prices, India rapidly changed its oil purchase strategy and increased the purchase of oil from Russia. After the war between Russia and Ukraine, America and European countries have imposed trade sanctions on Russia. However, even after this, India is purchasing large quantities of oil from Russia. When asked by Reuters on the deal with Reliance Industries, Rosneft did not give any information about the terms of the deal and said that India is a strategic partner of Rosneft Oil Company.