India’s energy major Reliance Industries Ltd. is in talks to enter the Russian downstream oil sector by investing in the refinery and petrochemical industries.

The move follows the recent visit of Russia’s Deputy Prime Minister Alexander Zhukov to India in early December.

Talks were held between RIL officials and Russian authorities on possible investments in Russia’s oil and gas sector and the Indian major may rope in a Russian energy firm as a partner, The Economic Times newspaper reported Monday.

Russia’s gas monopoly Gazprom may be RIL’s partner in downstream ventures. RIL is expected to push for stakes in upstream oil and gas assets in lieu of its investments in the downstream sector.

“RIL is concentrating on the downstream segment in Russia which offers huge opportunities,” the company said.

The move comes amid Russia’s process of increasing government control over its oil and gas assets. But amid this drive, Russia’s refining sector lags and needs investment, news reports said.

RIL’s move to enter this segment may be welcome as the company will bring in global expertise to Russia’s refining sector, the report said.
“On RIL’s part, an entry into Russia will provide a foothold in the European markets, where there is a growing demand for high-grade fuel,” a company spokesman said.

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