​Russia's leading oil company, Rosneft, is considering divesting its 49.13% stake in Nayara Energy (formerly Essar Oil), which it acquired in 2017 as part of a $12.9 billion deal—the largest foreign investment in India's refining sector. This potential move is primarily driven by challenges in repatriating earnings due to ongoing sanctions imposed by the US and EU since 2014.

Preliminary discussions have been initiated with major Indian conglomerates, including Reliance Industries, Adani Group, and JSW Group, to explore the sale of Rosneft's stake. The valuation of Nayara Energy in these talks has reportedly exceeded $20 billion. However, these negotiations are at an early stage, and the complexity and scale of the asset may pose challenges to finalizing a deal.

In addition to Rosneft's potential exit, UCP Investment Group, a Russian financial investment firm, is also seeking to divest its stake in Nayara Energy, aiming for a valuation exceeding $5 billion.

Nayara Energy operates a 400,000 barrels per day refinery in Vadinar, Gujarat, and manages approximately 6,500 retail fuel stations across India. The company recently announced a $217.5 million share buyback offer aimed at facilitating the exit of minority shareholders from the delisted firm.

While the potential divestment aligns with Rosneft's strategic adjustments amid geopolitical tensions, the outcome will significantly depend on the interests and assessments of prospective Indian buyers, considering factors such as return on investment, capital requirements, and the broader geopolitical landscape.