Rosneft to receive a share in one of the largest Indian refineries

Imposed with western sanctions, Rosneft has found a new partner - the Indian company Essar. In the framework of the cooperation the Russian company will receive 49% in one of the largest oil refinery in the world. The cost of such stake could be around $2 billion, and Rosneft is ready to pay for it with oil. An access to the shelf is offered to the Indian party, but, analysts think, the company won’t be able to replace ExxonMobil, which stopped working in Russia.

Yesterday, head of Rosneft Igor Sechin at the briefing at the BRICS summit reported that the company would receive 49% of the Indian Essar’s refinery in Vadinar. Today, the parties signed a letter of intent (legally binding documents can appear during the next two months), as well as a firm contract for the sale of 10 million tons of oil per year to Essar during ten years. "The supply will start as soon as Rosneft joins shareholders of the refinery," - said Igor Sechin. According to him, Rosneft can pay its share in the refinery as will money, as with oil, the amount of the transaction wasn’t disclosed.