India Signs First Term Contract to Import Crude Oil From Russia

State-owned Indian Oil Corp has signed a deal with Russian oil and gas company Rosneft for the annual purchase of 2 million metric tonnes of crude oil
This is the first ever annual oil purchase deal between India and Russia.
Under the deal India will import up to 2 million tonne of Urals grade crude oil from Rosneft of Russia.
India is world’s third largest energy consumer. It is 83 percent dependent on imports to meet its oil needs.
Two-thirds of the imports come from the Middle East, with Iraq being the biggest supplier followed by Saudi Arabia.
The agreement with Russia is step by India to diversify its sources away from the volatile Middle East.