SOURCE: REUTERS
Reliance Industries, operator of the world’s biggest refining complex, has signed a one-year deal with Russia’s Rosneft to buy at least 3 million barrels of oil a month in roubles, four sources aware of the matter told Reuters.
The shift to rouble payments follows Russian President Vladimir Putin’s push for Moscow and its trading partners to find alternatives to the Western financial system to facilitate trade despite US and European sanctions.
A term deal with Rosneft also helps privately-run Reliance to secure oil at discounted rates at a time the Opec+ group of oil producers is expected to extend voluntary supply cuts beyond June.
The Opec+ group comprising the Organisation of the Petroleum Exporting Countries (Opec) and allies, including Russia, is due to discuss the output cuts in an online meeting on June 2.
India, the world’s third-biggest oil importer and consumer, has become the biggest buyer of seaborne Russian crude since the West halted purchases and imposed sanctions against Moscow in the aftermath of Russia’s 2022 invasion of Ukraine.
India has also paid for Russian crude in rupees, dirhams and Chinese yuan.
State-owned Indian refiners, meanwhile, have been tapping spot markets for Russian oil because they were unable to finalise term supplies for this year, Reuters has reported previously.
“India is a strategic partner for Rosneft oil company,” the Russian company said in an emailed response to questions from Reuters, adding that it does not comment on confidential agreements with partners.