Russian oil giant Rosneft is expected to follow Shell and BP into the Indian fuel retail market with the acquisition of a stake in Essar Oil, a news report said.
Rosneft will enter into the deal alongside European trader Trafigura and Russian fund UCP, Reuters reported, citing unidentified sources close to the deal.
The $12billion deal would give Rosneft a 49% stake, with Trafigura and UCP scooping up the rest, the report said.
One source said Western-sanction-hit bank VTB would finance the deal, which could be sealed on Saturday during Russian President Vladimir Putin’s visit to India.
Essar, controlled by the billionaire Ruia brothers, operates a 400,000 barrel-per-day oil refinery on India’s west coast, according to the report.
It sells fuels through its 2,470 filling stations in India.
Last week, Reuters reported BP plans to open up to 3,500 stations in India, a market Shell has already entered.
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