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| Russia's Rosneft Boosts Oil Sales to India Amid Sanctions |
Russian energy company Rosneft has announced a deal to increase oil sales to India as it seeks new buyers following a decline in demand in Europe. The decision to deploy military forces to Ukraine last year saw Russia's share of the European market collapse, prompting sanctions against the Russian oil sector. Rosneft CEO Igor Sechin brokered the deal with the Indian Oil Corporation, but did not specify the volumes or value of the agreement. The announcement comes after Russian Deputy Prime Minister Alexander Novak said Moscow's oil sales to India had increased twenty-fold last year.
The deal with India is part of Russia's efforts to de-dollarise its economy, with the two countries discussing the possibility of making payments in national currencies. Russia is a major producer and key ally of the OPEC oil cartel. The country recently cut crude production by 500,000 barrels per day in response to Western sanctions. Rosneft, one of Russia's largest oil companies, posted a significant drop in annual profit earlier this month due to the impact of Western sanctions.
The agreement with India is a welcome boost for Russia's oil industry, which has been hit hard by sanctions and the decline in demand from Europe. India, which is the world's third-largest oil importer, is a key market for Russian oil exports, and the deal is likely to strengthen economic ties between the two countries. The move towards de-dollarisation is also part of a broader trend in Russia, as the country seeks to reduce its reliance on the US dollar and protect itself from the impact of Western sanctions. The agreement with India is a significant step towards achieving this goal.
