ONGC Videsh Ltd, a wholly-owned subsidiary of ONGC, is likely to sign the formal agreement to buy a 15 per cent stake in Russian oil major Rosneft’s subsidiary, Vankorneft, for $1.25 billion during Prime Minister Narendra Modi’s visit to Moscow from December 23-24.

Discussions on the deal had started during the last India-Russia Annual Summit that was held here last year. The two state-owned companies had signed the agreements for the deal in September this year.

The India-Russia Annual Summit is being held in Moscow, which will be attended by Modi. “All work on the deal is over now. The negotiations have been completed. It will now be formally signed when PM visits Moscow … The deal size is around $1.25 billion,” a top official told BusinessLine .

According to Foreign Secretary S Jaishankar, both sides expect to sign a number of agreements during the visit. “We have very special and privileged relationship with Russia … Russia is an old and trusted partner of India,” Jaishankar said here on Tuesday adding that both leaders will largely discuss issues related to trade, defence and energy. During the visit, Modi will also be accompanied by captains of Indian industry including Anil Ambani, Chairman, Reliance Group; Baba N Kalyani, Chairman and MD, Bharat Forge; Ravi Ruia of Essar Group; Dinesh K. Sarraf, Chairman and MD, ONGC; Suvarna Raju, Chairman, Hindustan Aeronautics Ltd.; Sukaran Singh, CEO, Tata Advanced Systems; and B Ashok, Chairman, IOC.

For Rosneft, this is the second merger and acquisition deal with an Indian firm this year. In July, Rosneft announced a deal to purchase a 49 per cent stake in the Shashi Ruia-owned Essar Oil.

Russian President Vladimir Putin and Modi will be holding their bilateral meeting on December 24.

N-power

In nuclear energy, he said, both sides will be “advancing” the roadmap on civil nuclear cooperation.

“We have an understanding with Russia to build 12 nuclear plants. This is work under progress. The first Kudankulam Plant is being built and is being connected to the grid. The second phase is in advanced stage. The rest are in talks,” Jaishankar said.

Both sides have set a target of achieving two-way trade worth $30 billion by 2025 from around $10 billion in 2014-15 and increasing investments to $30 billion from $11 billion at present, in the same period.

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