TLTP
NEW DELHI
Russian Ambassador to India Nikolai Kudashev has said that Russia retains a solid place in the Indian energy market and wants to expand its oil exports to the South Asian country.
“This means more oil supplies there on a long-term basis, as well reaching contractual terms for the supply of Russia’s black gold to India for 20-25 years ahead,” he told reporters, adding that negotiations on the issue are currently underway.
“We supply crude oil and liquefied natural gas there. The point is now to raise this cooperation to a new long-term level, and therefore to give a new quality to our interaction in terms of energy supplies and security.”
The ambassador also talked about attracting Indian investment “more widely” in the development of the Vostok Oil project in the Russian Arctic. The project’s annual crude production could be up to 100 million tons, according to preliminary estimates. Kudashev said that India has shown “great interest in the project.”
Crude reserves in Russia’s Arctic have been attracting Indian companies willing to invest into the massive Vostok oil project which is “very interesting” for the country, Indian Minister for Petroleum and Natural Gas Dharmendra Pradhan said earlier.
The rebound in one of the world’s biggest oil growth drivers before the pandemic highlights the two-speed global oil demand recovery, with Asia driving higher consumption and consequently, oil prices, while Europe and the United States are reeling from renewed restrictions to fight record Covid-19 infections.
India’s recovery is also indicative of the immediate support that strengthening oil demand in the key Asian markets, China and India, gives to oil prices, unlike vaccine news, which contains more forward-looking expectations of mass vaccinations boosting economies and hence, oil demand.
In India’s case, fuel demand has been boosted by one of the effects of Covid-19 on customer preferences—people avoid public transportation and prefer the comfort and relative isolation from other people in their own vehicles. India continues to fight the pandemic and still has some restrictions in place on domestic bus and airline travel. This additionally boosts demand for gasoline and diesel for private vehicles.
