New Delhi: India will import crude oil from its old friend Russia. Indian Oil (IOCL) on Wednesday signed a contract with Russian company Rosneft to import crude oil from Russia, under which India will import 2 million tonnes of Ural grade crude oil this year. India is working on a strategy to reduce its dependence on OPEC countries for crude oil.

The two companies signed the first term contract on Wednesday during a meeting between Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan and Rosneft CEO and Chairman Igor Sechin. The Ministry of Petroleum and Natural Gas has said in a statement that the procurement of crude oil from Russia through long-term contracts is a part of the Indian strategy related to diversification in the supply of crude oil from non-OPEC countries to the country.

According to media reports, it is also a part of the five-year strategy for bilateral cooperation in the hydrocarbon sector, which was signed during PM Modi's visit to Vladivostok in September last year. The Ministry has stated that the inclusion of Russia as a new source for import of crude oil by India's largest oil company reduced the risks posed by geopolitical disruption (such as a crisis in Gulf countries) There will be a lot of help in bringing and the new system will also open the way to ensure price-related stability and energy security in India.

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