Deals with foreign investors increase the value of the state’s stake

17 march 2016 | Kommersant

Rosneft is selling 50% in its Vankor deposit to India. A memorandum of understanding has been signed with ONGC. In this manner the company is trying to solve as many problems having to do with sanctions as possible in the run-up to privatization not to run into any restrictions because of financial problems. That is according to Analytical Center expert Alexander Kurdin.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

“Any major financial partnership, including a partnership in such a large project and with a company like ONGC, significantly improves the image and market value of Rosneft,” Mr. Kurdin told a Kommersant correspondent. - “Theoretically they could have bargained for more money but given the budgetary problems the country is facing now it probably would have been quite difficult.”

Rosneft is also negotiating with three other Indian producers that it may eventually sell 23.9% of shares to. India is trying to make it into the top three oil exporters and this may help diversify the company’s development models. In addition to Chinese contracts, the company will get another partner of equal size in the east, the publication notes.