Reuters: India's Reliance Industries Signs Oil Deal with Russia's Rosneft to Buy Oil In Roubles

India’s Reliance Industries, which runs the world's largest refinery, struck a one-year deal with Russia's Rosneft to buy at least 3 million barrels of oil monthly, payable in roubles, according to Reuters citing sources familiar with the matter.

This move aligns with Russia’s self-proclaimed President Putin's aim to reduce reliance on Western financial systems for trade in the face of sanctions by the US and Europe.

The Rosneft deal offers Reliance, a private company, access to discounted oil at a time when OPEC+ is likely to maintain production cuts beyond June. OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, will discuss output levels in an online meeting on June 2nd.

India, the world's third-largest oil importer, has become the top buyer of Russian seaborne crude since Western nations stopped purchases and imposed sanctions on Russia following its full-scale invasion of Ukraine in 2022. Notably, India has also paid for Russian oil using rupees, dirhams, and Chinese yuan.

Meanwhile, state-owned Indian refineries have resorted to purchasing Russian oil from spot markets due to the inability to secure long-term contracts for this year.

"India is a key partner for Rosneft," the Russian company stated in a response to Reuters' inquiry, but declined to comment on specific agreements with partners. They did confirm ongoing cooperation with Indian companies on oil production, refining, and trading activities.