Rosneft’s strategic India deal in the bag

http://www.dw.com/en/rosnefts-strategic-india-deal-in-the-bag/a-40172722

Rosneft announced Monday it had finalized its deal with Essar Oil under which the Russians acquired 49 percent of the Indian company that’s valued at $12.9 billion (11 billion euros).

Another 49 percent are being acquired by a consortium including global commodities giant Trafigura.

Essar Oil owns one of the world’s most modern refineries, Vadinar, and controls over 3,500 filling stations.

In a statement Monday, Essar called the deal “Russia’s single-largest foreign investment made anywhere in the world and also the single-largest investment in India.”

One of the brothers, who founded the Indian company, Shashi Ruia, said “today is a historic day for Indo-Russian economic ties, reflecting 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 which Russian President Vladimir Putin has built up dialog in recent years.

“The closing of the deal is a remarkable achievement for Rosneft too as the company has entered the high-potential and fast growing Asia Pacific market, said Rosneft CEO Igor Sechin.

The transaction is indeed seen as a strategic triumph for Russia, allowing it to move into other marketsamid EU and US sanctions imposed against it over the country’s Ukraine policy.

Additionally, Rosneft said Essar’s Vadinar refinery would allow it to process crude oil produced in Venezuela, which is especially difficult to refine.

———–

thanks to maria for the link..

“Essar called the deal “Russia’s single-largest foreign investment made anywhere in the world and also the single-largest investment in India.”

BRICS mates..

“The closing of the deal is a remarkable achievement for Rosneft too as the company has entered the high-potential and fast growing Asia Pacific market, said Rosneft CEO Igor Sechin.”

those sanctions are really cutting deep eh?

401

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~ by seeker401 on September 1, 2017.

4 Responses to “Rosneft’s strategic India deal in the bag”

  1. India’s making the deals. Here is one with the U.S., which includes imports to India and India investments in the U.S. (shale).

    http://www.thehindu.com/news/national/crude-oil-opens-new-vistas-in-india-us-relationship/article19507486.ece

    Essar Oil also has works in the U.K. and Kenya. So it now works in a semi-EU country (the U.K) even though there are sanctions:

    “Stanlow, UK: Essar Energy acquired Stanlow Refinery, with a nameplate capacity of 296,000bpsd, in 2011. The Stanlow Refinery is UK’s second biggest oil refinery, meeting approximately 15% of the country’s transportation fuel requirements.

    Mombasa, Kenya: Fifty percent controlling stake in an 80,000 bpsd refinery run by the Kenya Petroleum Refineries Ltd (KPRL); the remaining 50 percent is owned by the Kenyan government”

    https://en.wikipedia.org/wiki/Essar_Group (Essar Group did own Essar Oil)

  2. https://www.reuters.com/article/us-essar-oil-m-a-rosneft-oil/indias-essar-agrees-to-sell-oil-arm-to-rosneft-led-group-idUSKBN12F05P
    “India’s debt-laden Essar Group confirmed on Saturday that it has agreed to sell a 98 percent interest in its Essar Oil unit to a consortium led by Russia’s Rosneft”
    Ah, so the larger corporation, Essar Group, is in debt troubles.

    “has been under pressure from its lenders to reduce its debt burden.”
    Lenders!

    “In parallel with the deal, Russian lender VTB (VTBR.MM) said on Saturday it would lend Essar about $3.9 billion toward debt reconstruction. Chanda Kochhar, chief executive of ICICI Bank Ltd (ICBK.NS) – one of Essar’s top lenders – welcomed the deal, noting that it has been working closely with Essar to deleverage its stressed balance sheet.”

    https://en.wikipedia.org/wiki/VTB_Bank

    Russian VTB Bank is majority owned by the nation of Russia with the other large owners being from China, Norway, Azerbaijan, and Qatar.

    “ICICI Bank Ltd (ICBK.NS) – one of Essar’s top lenders”

    “The bank also faced allegations of inappropriate behavior in recovering its loans. These allegations started initially when the “recovery agents” and bank employees started threatening the defaulters. In some cases, notes written by the bank’s employees asking the defaulters to “sell everything in the house including family members”, were found. Such charges faced by the bank rose to a peak when suicide cases were reported wherein the suicide notes spoke of the Bank’s recovery methods as the cause of the suicide. This led to a lot of legal battles and the bank paying huge compensations.”
    https://en.wikipedia.org/wiki/ICICI_Bank

  3. All wars are bankers’ war..

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