Indian Company Agrees to Purchase Russian Oil in Rubles

Indian Company Agrees to Purchase Russian Oil in Rubles
Photo by All Bong / Unsplash

Reliance Industries, the operator of the world's largest oil refining complex, has agreed to purchase Russian oil in rubles. This agreement was reported by Reuters, citing sources familiar with the matter.

The Indian company has signed a contract with Rosneft to purchase three million barrels of oil per month. Payments for these purchases will be made through India's HDFC Bank and Russia's Gazprombank in Russian currency. Under the long-term agreement, Reliance will receive Urals oil at a discount of three dollars per barrel compared to the Middle Eastern benchmark, Dubai.

Additionally, the deal includes the supply of low-sulfur crude oil (Eastern Siberia-Pacific Ocean variety) from Russia's Pacific port of Kozmino. These shipments will be discounted by one dollar per barrel in comparison to Dubai quotes.

In April 2024, India significantly increased its purchases of Russian oil, with a nearly 20 percent rise on a monthly basis. Indian refineries imported a total of 1.96 million barrels of Russian crude oil per day in April, marking a record high since July 2023, according to the report.