Reliance Industries, one of India’s largest conglomerates, has made a significant shift in its oil purchasing strategy by agreeing to buy Russian oil using roubles. This decision comes in the wake of Western sanctions on Russia, prompting Reliance to bypass traditional financial systems. The deal, struck with Russia’s Rosneft, ensures that Reliance secures a steady supply of oil at discounted rates, crucial given the expected OPEC+ supply cuts. Payments will be facilitated through India’s HDFC Bank and Russia’s Gazprombank, underscoring a strategic pivot towards non-Western financial channels.
This move is particularly intriguing as it highlights India’s ongoing efforts to maintain energy security despite geopolitical tensions. By opting to trade in roubles, Reliance not only strengthens its business ties with Russia but also mitigates the impact of sanctions on its operations. This arrangement, involving the purchase of at least 3 million barrels of oil monthly, reflects a broader trend of countries seeking alternative payment methods to navigate around international sanctions and maintain stable energy supplies.