Rosneft exploring exit from Nayara Energy amid sanctions
21 Mar 2025
Rosneft and UCP may exit Nayara Energy, but buyer concerns over returns and sanctions complicate a $25 billion+ potential transaction.
Rosneft and UCP may exit Nayara Energy, but buyer concerns over returns and sanctions complicate a $25 billion+ potential transaction.
Nayara Energy
Expert Analysis
Rosneft May Exit Nayara Energy Due to Sanctions.
Expert Analysis :
Rosneft’s Potential Exit: Rosneft is reportedly considering selling its 49.13% stake in Nayara Energy, acquired in 2017 for $12.9 billion, amid sanctions.
Sanctions & Valuation Impact: Rosneft, facing US and EU sanctions since 2014, struggles to repatriate earnings from Nayara Energy. Talks with Indian firms value the unit at over $20 billion, but deal complexities pose challenges.
UCP’s Stake Sale & Ownership Structure: UCP Investment Group is exploring the sale of its 24.5% stake in Nayara Energy, valued at over $5 billion. Currently, Rosneft holds 49.13%, while Trafigura and UCP own 24.5% each, with the rest held by retail shareholders.
Potential Buyers & Discussions: Rosneft and UCP have held talks with Reliance, Adani, and JSW, with Rosneft executives visiting Delhi in March. Saudi Aramco, committed to $100 billion in investments in India, is also exploring opportunities in the refining sector.
Deal Challenges & Nayara’s Market Presence: Some Indian firms hesitate due to low returns, capital requirements, and sanctions risks. Nayara Energy operates India’s second-largest refinery and 6,500+ fuel outlets, making it the largest private fuel retailer.
Aramco’s India Strategy & Responses: Aramco, previously committed to the West Coast refinery project, is now in talks with ONGC and BPCL for refinery partnerships. Rosneft, Reliance, Adani, UCP, JSW, and Aramco declined to comment.