Economy

Russia to supply India with 10 million tons of oil

India and Russia sign multiple agreements to cooperate on energy, the military, technology and economy

25.12.2015
Russia to supply India with 10 million tons of oil

Ankara

ANKARA

Russia will supply 10 million tons of oil annually to India for the next decade, Russian President Vladimir Putin has said.

Speaking late on Thursday after meeting Indian Prime Minister Narendra Modi in Moscow, Putin said the deal was “in the framework” between Rosneft and India’s Essar conglomerate.

"In the framework of the agreement between Rosneft and Essar group, large-scale supplies of oil and petroleum products -- 10 million tons of oil annually in the next 10 years -- are planned to be delivered to Indian refineries," Putin said in a joint statement with Modi, reported the Moscow Times.

Due to its economic development, India became the fourth-biggest oil consumer in the world, behind the U.S., China and Japan in 2013, according to the U.S.' Energy Information Administration.

The body also projects that India's oil demand will double by 2040 and expects its domestic oil production to remain flat.

During Modi's visit to Moscow, India signed 15 agreements with Russia, which include military and technological cooperation plus aircraft, automobile and metallurgy deals.

The countries will also work together in the chemical and diamond industries, and on nuclear technology.

Putin confirmed that the second unit of the Russian-built Kudankulam nuclear power plant in India will become operational soon, and that construction of the facility’s third and fourth units will begin shortly after.

He added that building the fifth and sixth units was also discussed during the meeting.

The first unit of Kudankulam nuclear power plant, located in southern Indian state of Tamil Nadu, became operational in 2014.

When finished, the project is expected to have an installed capacity of more than 6,000 megawatts.

Putin also highlighted India as a country with an increasingly important role in international politics, and hinted at a possible permanent place on the UN Security Council.

On Wednesday, Modi stated India was planning a $150 billion armed forces development program, while the country’s foreign secretary Subrahmanyam Jaishankar said investments with Russia are set to increase.

“Mutual investments currently average around $11 billion and we want to increase them to $30-50 billion by 2025," Jaishankar said Tuesday, according to the Moscow Times.

Russia and India also signed a protocol to provide ease visa applications for both countries' businessmen. 

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