Reliance to buy Russian oil in roubles, sources say


NEW DELHI: Reliance Industries, operator of the world’s largest refining complicated, has signed a one-year cope with Russia’s Rosneft to buy a minimum of 3 million barrels of oil a month in roubles, 4 sources conscious of the matter advised Reuters.
The shift to rouble funds follows Russian President Vladimir Putin‘s push for Moscow and its buying and selling companions to discover alternate options to the Western monetary system to facilitate commerce regardless of US and European sanctions.
A time period cope with Rosneft additionally helps privately run Reliance to safe oil at discounted charges at a time when the OPEC+ group of oil producers is anticipated to lengthen voluntary provide cuts past June.
The OPEC+ group comprising the Organisation of the Petroleum Exporting Countries (OPEC) and allies together with Russia is due to talk about the output cuts in a web based assembly on June 2.
India, the world’s third-biggest oil importer and client, has change into the largest purchaser of seaborne Russian crude because the West halted purchases and imposed sanctions towards Moscow in the aftermath of Russia’s 2022 invasion of Ukraine. India has additionally paid for Russian crude in rupees, dirhams and Chinese yuan.
State-owned Indian refiners, in the meantime, have been tapping spot markets for Russian oil as a result of they have been unable to finalise time period provides for this yr, Reuters has reported beforehand.
“India is a strategic partner for Rosneft oil company,” the Russian firm mentioned in an emailed response to questions from Reuters, including that it doesn’t touch upon confidential agreements with companions.
“Cooperation with Indian companies includes projects in the field of production, oil refining and trading of oil and petroleum products.”
Rosneft additionally mentioned that business approaches to figuring out the worth of bought crude are the identical for all corporations, no matter whether or not they’re non-public or state-controlled.
Reliance didn’t reply to a request for remark.
Under the phrases of the deal, which took impact at first of the Indian monetary yr from April 1, Reliance will buy two cargoes of about a million barrels of Urals crude with an choice to buy 4 extra every month at a reduction of $3 a barrel to the Middle East Dubai benchmark, the sources mentioned.
The refiner may also buy one to two cargoes a month of low-sulphur crude oil, primarily ESPO Blend exported from Russia’s Pacific port of Kozmino, at a premium of $1 a barrel to Dubai quotes, the sources added.
Reliance has agreed to make fee for the oil utilizing Russia’s rouble by way of India’s HDFC Bank and Russia’s Gazprombank, the sources mentioned. Further particulars on the fee mechanism weren’t instantly obtainable.
HDFC Bank and Gazprombank didn’t reply to requests for remark.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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