ISLAMABAD: Russian energy giant Rosneft announced an agreement on Wednesday to increase oil sales to India as Moscow seeks new buyers amid tensions with the West over the Ukraine conflict.
Following the Kremlin’s decision to send troops to Ukraine in February, Russia’s share of the European market fell as Kyiv’s allies-imposed sanctions on Russia’s oil sector.
Rosneft’s CEO travel to India
Rosneft said in a statement that its CEO, Igor Sechin, traveled to India and met with the head of the Indian Oil Corporation to reach an agreement. Rosneft said in a statement that Rosneft Oil Company and Indian Oil Company signed a term agreement to significantly increase oil supplies to India and diversify the grades to India.
However, Rosneft did not specify the volumes stipulated in the agreement or value. The announcement comes just one day after Russian Deputy Prime Minister Alexander Novak stated that Moscow’s oil sales to India doubled last year.
According to Rosneft, representatives from the two oil companies also discussed “the possibility of making payments in national currencies,” referring to Russia’s efforts to de-dollarize its economy. In response to the Western sanctions, Russia, a major producer and key ally of the OPEC oil cartel, reduced crude production by 500,000 barrels per day this month.
In the aftermath of Western sanctions against Russia, Rosneft reported a sharp drop in annual profit earlier this month.
