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* Rosneft to buy stake in Indian refiner, supply oil
* Saudi Arabia falls behind Russia as top supplier to China
By Vladimir Soldatkin
MOSCOW, July 9 (Reuters) - Top Russian oil producer Rosneft has raised the stakes in its battle with Saudi Arabiafor market share by securing new Asian markets to hedge againstthe risk that any new Western sanctions could hit crude sales.
Rosneft said on Wednesday it had signed a preliminary dealto buy a 49 percent stake in Essar Oil, which controlsthe Vadinar oil refinery, India's third largest.
Rosneft also signed a deal to supply the refinery with200,000 barrels per day for the next 10 years.
The deal is consistent with Rosneft's goal to send 40percent of its oil exports to Asian markets by 2019, up fromabout a third now, following a chill in relations with the Westover Moscow's role in the Ukraine conflict.
"India and China are the two most interesting markets bothfor crude oil and oil products. Those are colossal markets interms of population," said Sergei Pigarev, analyst with Rye, Man& Gor securities.
"The deal will, of course, allow Rosneft to cement itsposition there and help to get more market share from SaudiArabia, though we have to look at the prices, how much isRosneft is paying?"
Saudi Arabia fell behind Russia and Angola as the biggestcrude suppliers to China in May. The OPEC kingpin also lost itsspot as India's top oil supplier to Nigeria for the first timein at least four years.
While Rosneft sends the bulk of its oil to nine largerefineries in Russia, it has interests in German and Italianrefineries and is looking to get a slice of the market in China.
The European Union and United States have imposedwide-ranging sanctions on Russian companies and individuals,including Rosneft's Chief Executive Officer Igor Sechin, a closeally of President Vladimir Putin, after Moscow annexed theCrimean peninsula from Ukraine last year.
The sanctions include visa bans and restrictions on accessto Western capital, as well as stopping Western firms providingtechnology or assistance to tap unconventional oil in Russia.
Russian oil and gas sales, which account for half thecountry's federal budget revenues, have not been affected by thesanctions so far, though some participants fear the worst.
"The rationale for the deal appears to be finding a newlong-term market for Rosneft's crude outside of the EU tominimise the risk of disruptions," analysts at Russian bankUralsib Capital wrote in a note. (Additional reporting by Denis Pinchuk and Katya Golubkova inUfa; editing by David Clarke)
