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Russia and India oil ties are strengthened as US trade deal targets crude imported

On Monday, U.S. president Donald Trump announced that he had reached a deal with Indian prime minister Narendra Modi. The agreement included a stop to the purchase of Russian oil by India.

The U.S. is trying to limit Russia's oil revenues to make it more difficult for Moscow to finance the?war? in Ukraine.

Here are some important facts about the oil trade between Russia and India.

OIL PURCHASES

After the outbreak of the Ukraine war in February 2022, India became the largest buyer of Russian oil by sea.

After some Indian refiners halted imports in November under pressure from sanctions, Moscow wants India maintain higher purchases.

Data from trade sources shows that India's Russian oil imports in December fell to the lowest level in two years, while OPEC share of Indian 'imports' rose to an 11 month high.

The United States and European Union have tightened sanctions on Russia, causing the oil to flow to India to drop by 22% in December to 1,38 million barrels a day.

The data revealed that Russia's 'overall' share fell to 27,4%, its lowest level since January 2023. Meanwhile, OPEC's share increased to 53,2%.

In spite of the decline, Russia was the largest supplier of oil for India in December, and also during the first nine-months of the current fiscal year, which runs until March 31, 2026. Iraq and Saudi Arabia were the next two suppliers.

After other suppliers pulled out, the Russian-backed Indian'refiner Nayara Energy is now exclusively running on Russian oil. Russia is looking to India for support in boosting?Nayara Energy's fuel sales and capacity usage.

UPSTREAM ASSETS

India's Oil and Natural Gas Corp wants to retain its 20% share in Russia's Sakhalin-1 Oil and Gas Project in its Far East.

Oil India Ltd.,?Indian Oil Corp. and Bharat PetroleumResources own a 23.9% stake in JSC 'Vankorneft, and a 29,9% stake in Taas Yuryakh Neftegazodobycha. Both are oil-producing subsidiary of Rosneft.

ONGC Videsh is the overseas investment arm of ONGC. It also owns a 26% share in JSC Vankorneft.

In Russian banks, millions of dollars in dividends due to Indian companies from the assets are still stuck.

Oil India holds a 50% share in the Russian oil block License No. 61.

(source: Reuters)