India has asked State-run energy companies to evaluate the possibility of buying European oil major BP’s stake in sanctions-hit Russian company Rosneft, two people familiar with the matter have said. BP has announced that it is abandoning its 19.75 per cent stake in Rosneft. 

The Oil Ministry had last week conveyed its intent to ONGC Videsh (OVL), Indian Oil Corporation, Bharat Petro Resources (BPRL), Hindustan Pertoleum’s subsidiary Prize Petroleum, Oil India and GAIL Indian companies and the Oil Ministry did not respond to the Reuters emails seeking comment. 

While Western nations have imposed sanctions against Russia over the war in Ukraine, India has not explicitly condemned Moscow’s actions there. 

The world’s third-biggest oil importer and consumer, India imports about 85 per cent of its 5 million barrels per day (bpd) of oil needs. 

The call on Indian companies to explore buying the stake in Rosneft came after BP CEO Bernard Looney had met Indian Oil 

Minister Hardeep Singh Puri in March. 

BP declined to comment. 

Oil Ministry has also asked OVL, the overseas investment arm of ONGC to consider buying a 30 per cent stake held by Exxon Mobile Corp in the Sakhalin 1 project in Russia’s Far East. Exxon is the operator of the project. OVL already holds a 20 per cent stake in the project. 

One of the sources said Indian companies hopes to get stakes in Russian assets at discounted rates, given the risk involved, dubbing the potential transactions “distress sale“.