Russia has cleared ONGC's $2.6 billion takeover of Russia-focused Imperial Energy. ONGC had agreed the takeover of Imperial in late August. The deal marks ONGC's second investment in Russia, where the company already has a 20 percent stake in the Sakhalin-1 oil and gas consortium headed by U.S. major Exxon.
ONGC's overseas arm, ONGC Videsh, had agreed to pay 1,250 pence in cash for each of its shares. ONGC has said the deal would go ahead despite the financial crisis, which has delayed many deals across different industries amid the virtual closure of capital markets. The location of Imperial's fields means ONGC is unlikely to ship oil from them to India, but its ownership provides a hedge against rising energy costs.