Sanctions-hit Russia announces deal to boost India’s oil supply: report

Moscow:

Russian energy giant Rosneft on Wednesday announced a deal to increase oil sales to India, as Moscow seeks new buyers following tensions with the West over the Ukraine dispute.

The Kremlin’s decision to deploy its army to Ukraine last February saw Russia’s share of the European market plummet as kyiv’s allies imposed sanctions on Russia’s oil sector.

Rosneft said in a statement that its CEO Igor Sechin visited India and negotiated a deal with the head of the Indian Oil Corporation.

“Rosneft Oil Company and Indian Oil Company have signed a forward agreement to significantly increase oil supply and (thus) diversify grades to India,” Rosneft said in a statement.

Rosneft, however, did not specify the volumes stipulated in the agreement or its value.

The announcement comes a day after Russian Deputy Prime Minister Alexander Novak said Moscow’s oil sales to India had increased more than twenty-fold in the past year.

Rosneft said representatives of the two oil companies also discussed “possibilities of making payments in national currencies”, highlighting Russia’s efforts to de-dollarize its economy.

Russia, a major producer and key ally of the OPEC oil cartel, cut crude output by 500,000 barrels a day this month in response to Western sanctions.

Earlier this month, Rosneft posted a sharp drop in its annual profit following Western sanctions against Russia.

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