Summary

• Rosneft to ship 500,000 bpd of various crude grades.
• Biggest India-Russia energy deal ever worth $13 billion
  a year at current prices.
• Pricing and volumes to be reviewed annually, sources
• Agreement strengthens India-Russia energy ties.
• India benefits from cheaper Russian oil amid Western sanctions.

Russia’s state oil firm Rosneft (ROSN.MM) has agreed to supply nearly 500,000 barrels per day (bpd) of crude to Indian private refiner Reliance (RELI.NS) in the biggest ever energy deal between the two countries, three sources familiar with the deal said.

The 10-year agreement amounts to 0.5% of global supply and is worth roughly $13 billion a year at today’s prices. It would further cement energy relations between India and Russia, which is under heavy Western sanctions over its invasion of Ukraine.