Indians will continue to get cheap oil, Mukesh Ambani’s Reliance signs deal with Russian company.OPEC, a group of crude oil producing countries, will continue to cut oil supply beyond June 2024. Due to this, there will be a possibility of increase in oil prices worldwide.
#Reliance signs deal with #Russia‘s #Rosneft to purchase #oil in #roubleshttps://t.co/X6aKrcZsJx
— Economic Times (@EconomicTimes) May 29, 2024
But due to the term deal of Reliance Industries with Rosneft, it will help in providing oil at concessional rates to the public in India. The most important thing is that payment will be made in Russian currency rubles.
Billionaire businessman Mukesh Ambani’s Reliance Industries (RIL) has signed an important deal with Russian oil company Rosneft. Under this agreement, Reliance will import at least 30 lakh barrels of Russian oil in the current financial year i.e. 2024-25. The most important thing is that payment will be made in Russian currency rubles. This news has been given by news agency Reuters quoting 4 sources.
Reliance has agreed to pay for oil in Russian rubles through India’s HDFC Bank and Russia’s Gazprombank. However, not much detail has been revealed yet about the payment system.
OPEC, a group of crude oil producing countries, will continue to cut oil supply beyond June 2024. Due to this, there will be a possibility of increase in oil prices worldwide. But, due to the term deal of Reliance Industries with Rosneft, it will help in providing oil at concessional rates to the public in India.
The OPEC group has been formed by including the Organization of Petroleum Exporting Countries (OPEC) and other partner countries including Russia. It will take the decision on oil production cuts in an online meeting on June 2, 2024.
India ranks third in the world in terms of import and consumption of crude oil. Following the start of the Russia-Ukraine war in 2022, Western countries imposed stringent economic sanctions on President Vladimir Putin’s Russia. Many Western countries reduced trade with Russia, especially purchases of oil and other energy resources.
But, India took advantage of this opportunity. It became the largest buyer of seaborne Russian crude, regardless of American pressure. India has paid for Russian crude oil in rupees, dirhams and even China’s currency yuan.