Rosneft finalizes strategic deal with Essar in India
Russia’s state-controlled oil giant Rosneft announced yesterday it had closed a deal with India’s Essar Oil that is the single largest foreign investment in India and is strategically important for Russia.
Announced in October 2016 as oil prices plunged, the deal values at $12.9 billion the Indian group that owns one of the world’s most modern refineries-Vadinarand controls over 3,500 petrol stations.
Rosneft is acquiring a 49 percent stake, while another 49 percent is being acquired by a consortium including global commodities giant Trafigura. Essar in a statement called it “Russia’s single largest foreign investment made anywhere in the world” and also “the single largest foreign investment in India.” One of the brothers who founded the company, Shashi Ruia was quoted as saying “Today is a historic day for IndoRussian economic ties.”
He said the deal “reflects the shared vision of two of the world’s most dynamic leaders.” India under Prime Minister Narendra Modi is one of the emerging countries with whom Russian President Vladimir Putin has built up dialogue in recent years. “Together with our partners we intend to support the company (Essor) to significantly improve its financial performance and, in the medium term, adopt an asset development strategy,” Rosneft head Igor Sechin, a close ally of Putin, was quoted as saying in a statement. —AFP