A consortium led by Russian oil major Rosneft plans to finally complete its $12.9 billion acquisition of India’s Essar Oil next month, two Russian sources close to the deal told Reuters.
Acquiring the refiner will give state-owned oil Rosneft access to India, one of the world’s fastest-growing energy markets. The deal was announced to fanfare in October but has still not closed.
The sources said the delay was due to the complexity of Essar’s structure and financing, not to any issues relating to the buyers, who will buy 98 percent of Essar. Rosneft is under Western sanctions due to Moscow’s role in the Ukraine crisis.
The deal, announced during a visit to India by Russian President Vladimir Putin, is now set to be completed on March 15, the two sources said.
Rosneft will acquire a 49 percent share in Essar and another 49 percent will be shared between commodities trader Trafigura and Russian private investment group United Capital Partners (UCP).