March 22, 2025
Rosneft, which lost its assets in Germany shortly after the 2022 Russian invasion of Ukraine, could soon be forced to divest its last major overseas holding, independent Russian newspaper The Moscow Times reported on March 21.
The state-owned Russian oil company is considering selling its stake in India’s Nayara Energy—acquired in 2017 for about $12.9 billion.
“Due to Western sanctions, Rosneft has been unable for several years to repatriate profits from its Indian subsidiary, which operates 6,500 gas stations nationwide and runs the country’s largest private refinery,” the report said.
“Top executives visited New Delhi in March to discuss a potential deal, although an agreement is still far off.”
Rosneft has reportedly held talks with Indian companies Reliance Industries, Adani, and JSW Group, as well as with Saudi Aramco, which last year announced plans to invest up to $100 billion in India.
Finding a buyer, however, may prove challenging. Some Indian conglomerates have already declined a deal with Rosneft, citing sanctions and the low profitability of its subsidiary, the report noted. The potential sale is estimated at roughly $20 billion.
Rosneft became a major oil supplier to India after the full-scale invasion of Ukraine led to “unprecedented” sanctions, a G7 oil embargo, and Russian oil companies largely losing access to the European market.
When a fossil fuel nation like mafia land has oil producers in such dire predicaments as Rosneft (and Gazprom), you know that things are not going well and that its economy won’t be able to stave off collapse much longer.