Russia ready to meet India’s oil demand – Rosneft

Future energy cooperation will be based on market prices, according to CEO Igor Sechin

Russia is willing to meet India's oil needs at the “market price,” Reuters reported on Monday, citing Igor Sechin, the head of energy giant Rosneft. New Delhi currently buys Russian oil at a discount due to Western sanctions.

When asked by the media outlet if Moscow would offer an additional stake in its Sakhalin-1 project to ONGC Videsh or other Indian companies, Sechin explained that such a decision was up to the Russian government.

Last year, Moscow approved the requests of India’s ONGC and Japan’s Sakhalin Oil and Gas Development to retain their 20% and 30% stakes, respectively, in the project.

Indian refiners have increasingly favored buying Russian oil at steep discounts since early last year, after many Western buyers shunned the shipments amid escalating sanctions. The Western cap on Russian seaborne oil exports has led to a sharp increase in Indian imports.

The South Asian nation is keen to expand its energy cooperation with Russia as a means of boosting its energy security. New Delhi has been Russia’s top oil buyer over the last several months, having imported a record 1.17 million barrels a day in December. 

The country is also reportedly planning to seal a long-term contract with Russia’s Novatek on liquefied natural gas supplies.

READ MORE: India’s imports of Russian oil increase 33 times – data

This is the first indication from Moscow that the future expansion of energy cooperation between the two countries would come with a return to market prices.

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