Russia’s Rosneft in early talks with Reliance to sell stake in India unit

Russian oil giant PUSC Rosneft Oil Company is in early talks with Reliance Industries for sale of its 49.13% ‘stake in Nayara Energy, which operates a 20-million tonnes-a-year oil refinery and 6,750 petrol pumps in India, sources said.Reliance has held preliminary talks for acquisition of Nayara, which will help it overtake state-owned Indian Oil Corporation (IOC).

- GNS News Agency, July 7

But the talks are at preliminary stage and there is no guarantee that they may lead to a definite deal as valuation remains a sticky ground, three sources with direct knowledge of the matter said.

Top Rosneft officials have visited India at least thrice in the last one year, including visits to Anmedabad and Mumbai, for talks with potential investors.For Rosneft, which is looking to exit from Nayara due to western sanctions limiting its ability to repatriate full earnings from India operations, a potential buyer could be one who has substantial earnings overseas or is an international company - both of which could make quick overseas payouts for the stake.Being a large exporter of fuel, Reliance has substantial overseas income, the sources said.