Oil exports: Russia signs 13 billion dollars annual deal with India
Russian oil company Rosneft has signed a 13 billion dollars a year agreement with India to supply crude oil to Indian firm Reliance.
The deal, which is set to last 10 years under the negotiated terms, involves the supply of 500,000 barrels of oil per day to India—equivalent to about 0.5% of global production, according to Reuters.
Since the beginning of the conflict in Ukraine, Western nations have imposed significant financial sanctions on Russia, particularly targeting gas and oil imports, which are key revenue sources for Moscow.
However, this new agreement will help Russia bolster its economy at a time when Vladimir Putin plans to allocate nearly a third of the national budget to defense next year.
Despite the sanctions, countries like India and China have increased their purchases of Russian gas and oil at more competitive prices.
The European Union has imposed a cap on Russian oil prices at 60 dollars per barrel and banned direct imports. However, purchases of refined oil products or diesel from India, which are supplied using Russian oil, are exempt from these sanctions.
(QG - Source: The Independent / Reuters / Picture: © Unsplash)