Media: Indian state refiners pursue long-term oil import agreement with Russia

India's state-owned refiners are currently engaged in negotiations for a long-term oil import agreement with Russia, according to a government source familiar with the matter, who spoke on July 11.

Details such as the payment currency have yet to be finalized between India and Russia, the source noted, speaking anonymously due to the sensitivity of the issue, Caliber.Az reports quoting foreign media.

"The state refiners are already in joint negotiations with Russia," the source confirmed.

Indian private refiners Nayara Energy and Reliance Industries have already committed to term deals for importing Russian oil, with Nayara Energy being partly owned by Russian oil giant Rosneft.

The source indicated that Indian private refiners may join negotiations with their state-owned counterparts at a later stage. India, Asia's third-largest economy, requires "predictable and stable" oil supplies as it expands its refining capacity to meet growing fuel demand, the source emphasized.

Russia currently stands as India's primary oil supplier, given India's status as the world's third-largest importer and consumer of oil.

Amid sanctions imposed on Russia following its invasion of Ukraine in February 2022, India has emerged as the largest buyer of discounted Russian seaborne oil, as Western entities refrain from purchasing.

During Prime Minister Narendra Modi's recent visit to Russia, India sought to forge energy agreements with Rosneft and other prominent Russian oil companies.