Essar, Rosneft deal to close by next week

Essar has to close the deal by March 31st to save transaction from withholding tax

The Ruias of Essar group are racing against time to close the $13-billion sale of its Gujarat-based refinery to Russian oil major, Rosneft by as early as next week. The group has already received $300-million from the Russian company its stake in Essar Oil and expects rest of the proceeds with the deal closure which would help it to retire debt.

The closure of the deal before March 31st is important for the group as it has to save the transaction from withholding tax, which is coming into effect from April 1. As per new regulations, sale of shares from Mauritius-based