In a landmark energy agreement, Russia’s state oil company Rosneft has committed to supply 500,000 barrels of crude oil per day to India’s Reliance for the next 10 years, worth approximately $13 billion annually. This deal represents about 0.5% of global oil supply and strengthens energy relations between India and Russia, especially as Russia faces intense Western sanctions due to its invasion of Ukraine.

The deal is set to begin in January and will involve monthly deliveries of Russian crude grades, including medium-sulfur Urals, to Reliance’s massive refinery in Jamnagar, Gujarat. The agreement also allows for the review of pricing and volumes annually based on market conditions. The Russian oil will be delivered at discounts to the average Dubai price, offering a competitive edge to Reliance’s refining operations.

This partnership highlights India's growing reliance on Russian oil, which has become more attractive due to sanctions making it cheaper than other oil grades. The deal could further challenge Middle Eastern oil producers, particularly Saudi Arabia, in securing a share of India’s rapidly expanding energy market.

The agreement underscores India's position as a major player in the global oil market, particularly as growth in traditional oil-importing countries like China slows down.