Russia announce key oil deal with India’s IOC

Earlier this week, Russia’s Prime Minister Alexander Novak announced that Russian oil supplies to India jumped 22-fold last year. In the wake on ongoing Ukraine conflict, European buyers have turned to other markets for its oil imports. 

Photo Source: Shutterstock

New Delhi, March 30th: Aiming to ramp up sales of oil to India, Russia’s energy giant Rosneft announced a deal on Wednesday. The move comes at a time where Moscow is looking for new buyers in the wake of continued tensions with the West over the Ukraine conflict.

In an official statement, Rosneft has said that its CEO Igor Sechin had travelled to India and brokered an agreement with the head of the Indian Oil Corporation.

“Rosneft Oil Company and Indian Oil Company signed a term agreement to substantially increase oil supplies as well [as] diversify the grades to India,” Rosneft announced.

The company, however, did not announce any details of the pact such as the specific volumes stipulated in the agreement nor its value. The announcement comes a day after Russian Deputy Prime Minister Alexander Novak said Moscow’s oil sales to India had surged more than 20 folds in 2022. Rosneft said that representatives of the two oil companies also discussed the “possibilities of making payments in national currencies,” pointing to Russia’s efforts to de-dollarise its economy.

Russia, a major producer and key ally of the OPEC oil cartel, cut crude production by 500,000 barrels per day this month in response to the Western sanctions. Earlier in March, the energy company posted a sharp drop in annual profit in the wake of Western sanctions against Russia.