Reliance Industries Strikes Deal with Rosneft for Rouble Payments

Reliance Industries, India’s major refining company, has inked a significant agreement with Russia’s Rosneft. Under this deal, Reliance will purchase at least 3 million barrels of oil per month from Rosneft, paying in Russian roubles. This move aligns with Russian President Vladimir Putin’s call for alternative trading mechanisms amid Western sanctions. Additionally, the agreement enables Reliance to secure oil at discounted rates amidst expectations of extended OPEC+ supply cuts.

Key Details

Rouble Payments

Reliance will conduct transactions in roubles, adhering to Putin’s initiative to diversify trade away from the Western financial system.

Strategic Partnership

Rosneft acknowledges India as a strategic partner, involving collaboration in production, refining, and trading of oil and petroleum products.

Deal Terms

The agreement, effective from April 1st, entails Reliance purchasing Urals crude and low-sulphur crude, with specified discounts and premiums relative to benchmark prices.

Payment Mechanism

Reliance will utilize HDFC Bank in India and Gazprombank in Russia for rouble-based payments. Further details on the payment process are yet to be disclosed.

Implications and Outlook

Reliance’s shift to rouble payments underscores geopolitical shifts in energy trade dynamics and signifies deeper economic ties between India and Russia. The deal secures Reliance’s oil supply while providing benefits amidst global market fluctuations and geopolitical tensions.

Piyush Shukla

Recent Posts

India Secures ISA Presidency Again, Ashish Khanna New Director General

India and France have been re-elected as the president and co-president of the International Solar…

24 mins ago

Richest Actor in the World 2024, Know Name, Net Worth and Country

The entertainment industry has always captivated audiences, especially through the work of actors who have…

47 mins ago

Indian Boxers Shine at U-19 World Boxing Championships with 17 Medals

Parthavi Grewal, Vanshika Goswami, and Hemant Sangwan showcased their exceptional talent by securing gold medals…

50 mins ago

Largest Rice Producing Country in the World 2024

Rice is a crucial food for billions of people, especially in Asia and Africa. In…

59 mins ago

Punjab & Sind Bank Launches e-Bank Guarantee Facility with NeSL

Punjab & Sind Bank (PSB) has announced the launch of its e-Bank Guarantee (e-BG) facility…

59 mins ago

India-Vietnam Joint Military Exercise Begins in Ambala

The 5th edition of the Vietnam-India Bilateral Army Exercise, “VINBAX 2024,” began on Monday at…

1 hour ago