Russia, India sign biggest oil deal in history

The Russian Rosneft state-owned oil company and Indian Reliance Industries Limited have signed a record deal for the supply of 500,000 barrels of oil per day over the next 10 years.

The value of the agreement is estimated at $13 billion annually, Caliber.Az reports, citing foreign media. 

According to the terms of the agreement, Rosneft will supply 20-21 Aframax cargoes and three shipments of fuel oil per month to the Reliance complex in Jamnagar, Gujarat. Deliveries are set to begin in January 2025, with an option to extend the contract for an additional 10 years.

India, which does not support sanctions against Russia, has become the biggest importer of Russian oil following the EU's restrictions. Thanks to discounts on Urals crude, Indian refiners are gaining significant economic benefits. This deal will also create competition for Middle Eastern oil producers, including Saudi Arabia. 

Following Russia's invasion in Ukraine, Rosneft became subject to international sanctions, including an embargo on maritime shipments and restrictions on access to financial markets. For example, sanctions against Russian oil included an embargo on its maritime imports. Starting in February 2023, the embargo extended to oil products, such as diesel fuel. 

Later, the G7 member states, the EU, and Australia imposed a price cap on Russian oil. Rosneft company's assets were frozen, and its leadership, including CEO Igor Sechin, faced personal sanctions. 

European and US companies ceased cooperation with Rosneft, including joint projects in exploration and technology. Rosneft's access to international financial markets and loans was restricted. The administration of US President Joe Biden is preparing new sanctions targeting the export of Russian oil.

By Naila Huseynova