India's state-run refiners are in talks with Russia about a long-term oil import deal, Reuters reported on July 11, citing an undisclosed government source.
India became one of the chief buyers of Russian oil following Western sanctions, although pressure from U.S. sanctions increasingly threatens this trade.
India and Russia need to finalize agreements, such as the payment currency for the imports, the source told Reuters. Indian private refiners may also join the negotiations.
Indian private refiners Reliance Industries and Nayara Energy, partially owned by Russia's state-controlled oil company Rosneft, have already made deals for Russian oil imports, Reuters reported.
Asia's third-largest economy is searching for "predictable and stable" oil supplies to extend its refining capacity further to meet rising fuel demand, the source said.
New Delhi has been calling for a diplomatic solution to Russia's war against Ukraine while at the same time fostering close economic ties with Moscow. Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin in Moscow in early July.
By the end of Modi's visit, the two countries had identified nine key areas for closer cooperation, ranging from nuclear energy to medicine. They also aim to increase bilateral trade by more than half to reach $100 billion by 2030, according to Reuters.
Sushant Singh
