Rosneft considers selling stake in Nayara Energy

Rosneft, Russia's largest oil company, is considering selling its 49.13% stake in Nayara Energy. This move comes as the company struggles to repatriate earnings due to ongoing sanctions. Nayara Energy, valued at over $20 billion, is a significant player in India's refining sector. Rosneft acquired its minority stake in Nayara Energy in 2017 for $12.9 billion. Talks have begun with major Indian companies like Reliance Industries and Adani Group, although it's uncertain if a deal will be finalized. The negotiations are still in early stages and are complicated by the size of the asset and the challenges posed by sanctions. UCP Investment Group, another shareholder, is also looking to sell its stake for over $5 billion. Rosneft and UCP have approached various Indian firms and discussed investments with Saudi Aramco, which is interested in expanding into the Indian market. Some Indian companies are hesitant to proceed with the deal, citing low returns on investment and potential future capital requirements. Nayara Energy operates the second-largest refinery in India and has over 6,500 retail outlets. Recently, Nayara announced a share buyback offer to minority shareholders, providing them with an exit option. The company's shares were voluntarily delisted from stock exchanges in 2016, and many retail shareholders still hold shares.