Rosneft, an oil company majorly owned by the Kremlin, along with Singapore-based trading firm Trafigura and Russia-based financial investor UCP are set to acquire a combined stake of 97.4% in Essar Oil, Reuters reported on Friday. The $12 billion dollar (Rs 78,000 crore) deal includes $4.5 billion (approximately Rs 27,000 crore) in assumed debt.

Rosneft will own 49% of the stake, while the two other investors will share the remainder of the acquisition equally. None of the companies have released an official statement confirming the deal. Reuters quoted the unnamed officials, who said the Ruia-owned Essar Oil will announce the deal in Goa on Saturday. Russian President Vladimir Putin is scheduled to meet Prime Minister Narendra Modi during the Brics summit held in Goa.

Apart from Essar’s 4,00,000 barrel-per-day refinery, the sale reportedly includes the Vadinar Power Company, two ports and 2,200 retail outlets. An official said the transaction will be funded by Russia's VTB Capital, which is currently facing sanctions over the country’s involvement in the Ukraine crisis.

The deal will help Rosneft gain access to the fastest-growing major economy's market and help the Ruias reduce their debt, which was pegged at Rs 88,000 crore in March 2016, Business Standard reported. Unnamed officials told the publication that the deal will improve the relationship between Russia and India — the world's largest oil producer and the world's fastest growing fuel consumer.

Analysts say the deal, when confirmed, stands to become the biggest foreign direct investment into India. The Ruias were under a lot of pressure from its banking creditors to reduce their debt. This deal ends their oil chapter that began in the mid 1990s. The conglomerate also holds a Business Process Outsourcing enterprise, shipping, power and steel syndicates.