industrialist Mukesh Ambani’s Reliance Industries Limited has signed an agreement with Russia’s Rosneft to import crude oil worth $12-13 billion per year for 10 years. Sources gave this information. Russia’s public sector petroleum company Rosneft will supply up to 500,000 barrels per day (25 million tonnes annually) of crude oil to Reliance. At current prices the 10-year deal works out to $12-13 billion annually. When asked about this, Reliance spokesperson said, Russia is currently the largest supplier of crude oil to India.
India is buying a lot of oil from Russia
The spokesperson said, “We are always in touch with many international suppliers, including Russia, for the purchase of crude oil for our refinery. The number of cargoes will vary depending on the economy as per the market conditions.” India has become the second largest buyer of Russian crude oil since Russia’s attack on Ukraine in February 2022. Before the war, Russia’s share in the total oil imported was less than one percent, which has now increased to almost 40 percent. The main reason for this increase is the price cap imposed on Russia and European countries avoiding purchases from there. Due to this, Russian crude oil is available at a discount compared to supplies from other international markets.
After China, India is buying the most Russian oil
India, the world’s third largest oil consumer and importer, bought crude oil worth two billion euros from Russia in October. This is less than 2.4 billion euros in the previous month. China bought 47 percent of Russia’s crude oil exports in October. It was followed by India (37 percent), European Union (6 percent) and Türkiye (6 percent). Reliance has two refineries in Jamnagar, Gujarat, which refine crude oil and convert it into petrol and diesel. The company sells fuel to Europe and other countries. There is a price cap on Russian crude oil, but fuel export is allowed at full price.
A refinery in Jamnagar only for export
A Reliance spokesperson said the company does not comment on details of any supply contracts of a confidential nature. “Any such supply is in line with existing sanctions policies,” the spokesperson said. Reliance had earlier signed a one-year deal to buy at least 3 million barrels of oil per month from Rosneft. One of Reliance’s two refineries in Jamnagar is for export only. This 5,80,000 barrel per day capacity unit exports all the fuel produced. The other 6,60,000 barrel per day unit is to meet domestic requirements.
(With inputs from PTI/Language)
