The Indian government is seeking a first-of-its-kind cooperation between state-run refineries and the private refining company Reliance Industries. Long-term supply agreements are being negotiated with Russia.

This strategy aims to secure Russian oil at reduced prices, enhance the country's energy security, and mitigate the impact of Western sanctions on energy trade.

The government has asked state refiners – including Indian Oil, Bharat Petroleum and Hindustan Petroleum – to buy at least a third of their crude oil needs from Russia at a fixed discount.

This cooperation aims to strengthen the combined negotiating capacity of India, which includes the third largest oil consumer in the world, in the face of Russia.

Through these joint efforts, India hopes to obtain a discount greater than $5 per barrel on Brent crude, while Russia currently refuses to provide a discount of more than $3.

This extraordinary move is attributed to the sharp rise in oil prices following the Russian invasion of Ukraine, and the subsequent sanctions imposed on Russia by the United States and the West.