The Indian Oil Corporation (IOC), the country's largest oil company, has renewed an agreement with Russia's Rosneft to acquire up to 2 million tonnes of crude oil in 2022.
Indian Oil Corporation struck a deal with Rosneft Oil Company in February 2020 to import up to 2 million tonnes of oil through the port of Novorossiysk. The arrangement called for a supply of up to 1.7 million tonnes of crude oil in 2021, but IOC only bought by parcel or shipload because the cost of delivering the oil was too high when compared to other options.
The agreement calls for a supply of up to 2 million tonnes of oil from Novorossiysk, a Black Sea port, in 2022. In order to diversify its oil import basket and reduce its dependency on the Middle East, India has tied up supplies from Russia to the United States. According to the Russian firm's website, "Rosneft and Indian Oil Corpsigned a contract for the supply of up to 2 million tonnes of oil to India through the port of Novorossiysk by the end of 2022."