India Eyes Joint Oil Deal with Russia, State Refiners, RIL in Talks

India has taken an unusual step by urging its state-run oil refiners and private sector giant Reliance Industries Ltd. to collaboratively negotiate a long-term oil supply deal with Russia

This move aims to secure a stable supply of oil at a fixed discount to buffer the nation’s economy against volatile global oil prices, according to sources familiar with the discussions who requested anonymity due to the sensitivity of the negotiations.

The Indian government has informally requested this collaboration, seeking to ensure that at least one-third of the contracted oil supply from Russia is secured at a predetermined discount. This strategy is intended to enhance India’s bargaining power and stabilize oil prices for its economy, especially in light of the recent volatility.

However, this proposed collaboration faces significant challenges. Reliance Industries, a major player in the domestic fuel market, is hesitant to share sensitive information with its state-run competitors, potentially undermining the government’s efforts. The competitive nature of the domestic market makes such collaboration complex, despite the government’s push for a unified front in negotiations with Russia.