Rosneft strikes trade deal with Indian Oil Corporation
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CEO of Rosneft Igor Sechin signs an oil trade deal in India pledging to increase oil exports to the country.
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A rosneft oil rig is seen at the Rosneft's Vankor oil field in eastern Siberia, about 2,800 km (1,740 miles) east of Moscow, Russia on March 21, 2007 (AP Photo/Sergey Ponomarev, File)
Rosneft Oil Company signed a deal to increase oil sales to India, as Russian oil companies seek to find new consumers in the Wake of western sanctions relating to the war in Ukraine.
The war in Ukraine led to severe sanctions by the US and EU who lobbied countries around the world to join in on the unilateral sanctions.
Igor Sechin, CEO of Rosneft, traveled to India to broker a deal between the oil company and the head of the Indian Oil Corporation.
Sechin said in a statement, “Rosneft Oil Company and Indian Oil Company signed a term agreement to substantially increase oil supplies as well (as) diversify the grades to India,”
However, details on the volumes of fuel or the value of the deal remain undisclosed.
As reported by AFP the representatives of both companies discussed the possibility of payments in local currencies in line with Russian efforts to de-dollarize their economy.
This comes in line with a western imposed price cap of $60 per barrel of international oil. Indian refiners have attempted to pay for Russian oil in Dirhams in an attempt to curb the price caps. The efforts were in vain as the State Bank of India failed to complete the transfers.
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EU sanctions on Russia have zero effect
After the EU imposed sanctions on Russian oil, India rose to absorb the market's surplus. As of March India remains the largest importer of seaborne Russian crude oil, importing 1.6 million bpd of Russian crude oil in February.
Russian Deputy Prime Minister Alexander Novak revealed that Russian oil exports to India have increased by 20 times since last year.
