PJSC Rosneft Oil Company ( stylized as ROSNEFT) is a Russian integrated energy company headquartered in

Moscow Moscow is the Capital city, capital and List of cities and towns in Russia by population, largest city of Russia, standing on the Moskva (river), Moskva River in Central Russia. It has a population estimated at over 13 million residents with ...

. Rosneft specializes in the exploration, extraction, production, refining,

transport Transport (in British English) or transportation (in American English) is the intentional Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land tr ...

, and sale of petroleum, natural gas, and petroleum products. The company is controlled by the

Russian government The Russian Government () or fully titled the Government of the Russian Federation () is the highest federal executive governmental body of the Russian Federation. It is accountable to the president of the Russian Federation and controlled by ...

through the

Rosneftegaz Rosneftegaz is a Russian holding company managing assets in the oil and gas industry. Rosneftegaz is the owner of a controlling stake in Rosneft, 10.97% of the shares of Gazprom, as well as 26.36% of the shares of Inter RAO. 100% of Rosnefteg ...

holding company. Its name is a

portmanteau In linguistics, a blend—also known as a blend word, lexical blend, or portmanteau—is a word formed by combining the meanings, and parts of the sounds, of two or more words together.

of the Russian words (). Rosneft was founded in 1993, as a

state enterprise A state-owned enterprise (SOE) is a business entity created or owned by a national or local government, either through an executive order or legislation. SOEs aim to generate profit for the government, prevent private sector monopolies, provide goo ...

and then incorporated in 1995, acquiring a number of state-controlled gas and oil assets. It became Russia's leading oil company after purchasing assets of the former oil company

Yukos OJSC "Yukos Oil Company" (, ) was an oil and gas company based in Moscow, Russia. Yukos was acquired from the Russian government by Russian oligarch Mikhail Khodorkovsky's Bank Menatep during the controversial "loans for shares" auctions of ...

at state-run auctions. After acquiring OJSC

TNK-BP TNK-BP (, ) was a major vertically integrated Russian oil company headquartered in Moscow. It was Russia's third-largest oil producer and among the ten largest private oil companies in the world. In 2013 it was acquired by Russian oil company R ...

in 2013, then one of the largest oil companies in Russia, Rosneft became the world's largest

publicly traded A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...

petroleum company. Rosneft is the second largest Russian company and state-controlled company in Russia in terms of

revenue In accounting, revenue is the total amount of income generated by the sale of product (business), goods and services related to the primary operations of a business. Commercial revenue may also be referred to as sales or as turnover. Some compan ...

(

₽ The ruble sign, , is the currency sign used for the Russian ruble, the official currency of Russia. Its form is a Cyrillic letter Р with an additional horizontal stroke. The design was approved on 11 December 2013 after a public poll that too ...

4,134 billion). Internationally, it is one of the largest oil companies,

ranking A ranking is a relationship between a set of items, often recorded in a list, such that, for any two items, the first is either "ranked higher than", "ranked lower than", or "ranked equal to" the second. In mathematics, this is known as a weak ...

24 in terms of revenue. In the 2020

Forbes Global 2000 The ''Forbes'' Global 2000 is an annual ranking of the top 2000 public companies in the world, published by: sales, profit, assets and market value. The list has been published annually since 2003. By country Forbes Global 2000 as of 2023: ...

, Rosneft was ranked as the 53rd-largest public company in the world. The company operates in more than twenty countries around the world.

History

Origins

Rosneft has played a major role in the history of Russia's

oil industry The petroleum industry, also known as the oil industry, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The largest volume products ...

. The first use of the name ''Rosneft'' dates back to the late 19th century, when

exploration Exploration is the process of exploring, an activity which has some Expectation (epistemic), expectation of Discovery (observation), discovery. Organised exploration is largely a human activity, but exploratory activity is common to most organis ...

of oil fields in

Sakhalin Sakhalin ( rus, Сахали́н, p=səxɐˈlʲin) is an island in Northeast Asia. Its north coast lies off the southeastern coast of Khabarovsk Krai in Russia, while its southern tip lies north of the Japanese island of Hokkaido. An islan ...

began in 1889. Most of Rosneft's current assets were acquired during the

Soviet The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...

era.

1990s

Rosneft was established in 1993 as a

unitary enterprise A unitary enterprise () is a government-owned corporation in Russia and some other post-Soviet states. Unitary enterprises are business entities that have no ownership rights to the assets that they use in their operations. This form is possibl ...

with assets previously held by Rosneftegaz, the successor to the

Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...

's Ministry of Oil Industry. During the early 1990s, almost all Russian oil companies and refineries were extracted from Rosneft to form ten integrated companies. Later their number was halved as a result of acquisitions. On 29 September 1995, an

Order of the Government of Russia Orders of the Government of Russia () is secondary legislation, a normative administrative directive content published by the Government of the Russian Federation within the limits of its competence, on the basis and in pursuance of the Constituti ...

No. 971 transformed Rosneft into an

open joint stock company A public joint-stock company, abbreviated PJSC (, abbreviated ) or open joint-stock company, abbreviated OJSC (, abbreviated ), is a type of company in many successor states of the Soviet Union, particularly in Russia. Its distinguishing featur ...

. In March 1996, Rosneft founded the

Russian Regional Development Bank The Russian Regional Development Bank is a Russian development bank founded on 27 March 1996 in a form of PJSC. The RRDB offers a general variety of banking services. History The RRDB was founded by Rosneft on 27 March 1996. In early 2020, the ...

. Rosneft struggled financially and operationally during the

1998 Russian financial crisis The Russian financial crisis (also called the ruble crisis or the Russian flu) began in Russia on 17 August 1998. It resulted in the Russian government and the Russian Central Bank devaluing the Russian rouble, ruble and sovereign default, defau ...

with decreased production due to poor assets and lower retail sales with an underused refining capacity. In July 1998 the Russian government tried to sell Rosneft, but it failed. In October 1998, the Russian government appointed Sergey Bogdanchikov as president. The company owned two obsolete refineries and several low-productive and poorly managed oil-producing assets. In the late 1990s, plans for Rosneft's

privatization in Russia Privatization in Russia describes the series of post-Soviet reforms that resulted in large-scale privatization of Russia's state-owned assets, particularly in the industrial, energy, and financial sectors. Most privatization took place in the e ...

were made, but due to competition with equally influential

pretender A pretender is someone who claims to be the rightful ruler of a country although not recognized as such by the current government. The term may often be used to either refer to a descendant of a deposed monarchy or a claim that is not legitimat ...

s, they were not carried out.

2000s

From 2002 to 2004, the company's primary objectives were strengthening control over its assets, reducing the debt burden, and obtaining licenses in Eastern Siberia. The determining factor in enhancing the role of Rosneft in the Russian oil industry has been the support of the country's top leadership. The company, during this time, managed to restore its status after its rough start in the 1990s with the acquisition of Krasnodar Oil and Gas Company in 2002 and Northern Oil Company in early 2003. In addition, in 2002, the company received a license for the development of the Sakhalin-IV and Sakhalin-V project, and in 2003 a license for the development of the Sakhalin-III project. In 2005, Rosneft acquired a 25.94% stake in the company Verkhnechonskneftegaz and became the leading oil company of Russia in terms of production. In 2007, the company for the first time entered the annual list of one hundred most respected firms and companies in the world according to the weekly ''Barron's'', in 99th place. By the same year, Rosneft produced 100 million barrels of oil, 20% of Russia's output at the time. In March 2007, Rosneft had announced it hoped to increase production from 80 million tonnes to 103 million tonnes from 2006 to the end of 2007, extract 140 million tonnes of oil by 2012, and become a global top three energy company. When the

Great Recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.

struck Russia in late 2008, Rosneft was able to endure the economic pains by improving and strengthening business lines, management, and transparency, and as a result, became a leading oil company domestically and internationally. In February 2009, a number of agreements were negotiated between Russia and China that provided a 20-year contract for an annual supply of 15 million tons of oil between the Chinese National Petroleum Corporation (CNPC) and Rosneft, cooperation between CNPC and

Transneft Joint Stock Company Transneft () is a state-controlled pipeline transport company headquartered in Moscow, Russia. It is the largest oil pipeline company in the world. The company is operating over of trunk pipelines and transports about 80% ...

to construct and operate a branch of the Eastern Siberia–Pacific Ocean (ESPO) oil pipeline to China, and the provision of loans for US$25 billion—US$15 billion from Rosneft and US$10 billion from Transneft—by the

China Development Bank China Development Bank (CDB) is a policy bank of China under the State Council. Established in 1994, it has been described as the engine that powers the national government's economic development policies.

on the

security Security is protection from, or resilience against, potential harm (or other unwanted coercion). Beneficiaries (technically referents) of security may be persons and social groups, objects and institutions, ecosystems, or any other entity or ...

of supplies.

Acquisition of assets of Yukos

Starting in 2004, the Russian government organized a series of auctions to sell the assets of

Oil Company, of which Rosneft won the majority. On 22 December 2004, Rosneft purchased Baikal Finance Group, which bought

Yuganskneftegaz Yuganskneftegaz () is a wholly integrated subsidiary of Rosneft that owns and operates the second largest oil production complex in Russia. It was formerly the most important production subsidiary of Yukos, but was expropriated by the Russian gove ...

(Yugansk), a main asset of Yukos, three days earlier at a state-run auction for

US$ The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...

9.35 billion to satisfy tax debts. According to some estimates, this operation was directed by Russian authorities in order to nationalize Russia's oil and gas industry. In response to the deal,

Andrei Illarionov Andrey Nikolayevich Illarionov (, born 16 September 1961) is a Russian economist and former senior policy advisor to Vladimir Putin, the President of Russia, from April 2000 to December 2005. Since April 2021, he is a senior fellow at the non-go ...

, then a senior Putin economic advisor, denounced it as "fraud of the year". In 2005,

Mikhail Khodorkovsky Mikhail Borisovich Khodorkovsky (, ; born 26 June 1963), sometimes known by his initials MBK, is an exiled Russian businessman, Russian oligarchs, oligarch, and Russian opposition, opposition activist, now residing in London. In 2003, Khodork ...

(former chairman of Menatep) and

Platon Lebedev Platon Leonidovich Lebedev (Russian: Плато́н Леони́дович Ле́бедев; born 29 November 1956) is a Russian businessman and former CEO of Group Menatep. He was convicted of tax evasion, money laundering and embezzlement by ...

(business partner of Khodorkovsky) were sentenced to nine years in prison for fraud and

tax evasion Tax evasion or tax fraud is an illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others. Tax evasion often entails the deliberate misrepresentation of the taxpayer's affairs to the tax authorities to red ...

. In February 2007, they were charged again and accused of stealing $25 billion worth of oil from Yukos subsidiaries. They were convicted, but in 2013

Putin Vladimir Vladimirovich Putin (born 7 October 1952) is a Russian politician and former intelligence officer who has served as President of Russia since 2012, having previously served from 2000 to 2008. Putin also served as Prime Minister of Ru ...

pardoned Khodorkovsky and 2014 the Russian supreme court announced that Lebedev should also be freed early. The purchase of Yugansk in 2005 greatly increased the number of assets and production for Rosneft. Subsequently, Rosneft filed a lawsuit against Yukos in connection with the use of the understated transfer prices for the purchase of oil from Yuganskneftegaz prior to its breakup. At the same time, Rosneft itself also purchased oil and gas from its subsidiary, Yuganskneftegaz, at transfer prices. RF NG pipestoEU

In May 2007, Rosneft won a number of auctions for the sale of Yukos' assets, including five refineries and oil companies Tomsk Oil Company and Samara Oil and Gas Company, making it the largest oil company in Russia. According to experts on the Russian newspaper ''

Vedomosti ( rus, Ведомости, p=ˈvʲedəməsʲtʲɪ, ) is a Russian-language business daily newspaper published in Moscow. History was founded in 1999 as a joint venture between Dow Jones, who publishes ''The Wall Street Journal''; Pearson, ...

'', the assets of Yukos, bought by Rosneft at auction organized by the state, went to the company at a discount of 43.4% of the market price of this property. In 2007, the former assets of Yukos provided 72.6% of oil and gas condensate production and 74.2% of Rosneft's primary refining. In June, Rosneft paid $731 million for the transportation assets of Yukos, which had declared bankrupt in August 2006 after three years of litigation over tax arrears. In August, Bogdanchikov said that although the Yukos acquisitions had increased Rosnefts debt to $US 26 billion, he planned to reduce debt to 30% of total assets by 2010 by tripling refining capacity and expand into China.

Initial public offering of 2006

In July 2006, Rosneft placed 15% of its shares traded with a total value of US$10.7 billion in an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...

(IPO) at the

London Stock Exchange The London Stock Exchange (LSE) is a stock exchange based in London, England. the total market value of all companies trading on the LSE stood at US$3.42 trillion. Its current premises are situated in Paternoster Square close to St Paul's Cath ...

, the

Russian Trading System The Russian Trading System (RTS; ) was a stock market that operated in Moscow from 1995 to 2011. It was established in September 1995 to consolidate various regional trading floors into one exchange. In December 2011 it merged with Moscow Interba ...

, and the Moscow Interbank Currency Exchange. Part of the shares were distributed among the Russian population through banks such as

Sberbank The Public JSC Sberbank (, initially a contraction of ) is a Russian majority state-owned banking and financial services company headquartered in Moscow. As the Russian successor entity of the State Labor Savings Banks System of the USSR, it was ...

and

Gazprombank Gazprombank (), or GPB (JSC), is a private-owned Russian bank, the third largest bank in the country by assets. Since November 2014, Nikolai Shamalov#Yuri Shamalov, Yuri Shamalov's Gazfond is its largest shareholder. Gazprombank is one of the m ...

. The Federal Service for Financial Markets authorized the placement and circulation outside the country of a 22.5% stake in Rosneft. Rosneft announced a placement value of US$5.85–7.85 per share and

global depository receipt A global depository receipt (GDR and sometimes spelled ''depositary'') is a general name for a depositary receipt where a certificate issued by a depository bank, which purchases Share (finance), shares of foreign companies, creates a Security ( ...

(GDR), based on the company's capitalization after consolidation of US$60–80 billion. It planned to place shares for at least US$8.5 billion in order to repay loans to Western banks, including interest and taxes. On 14 July, the official results of the placement value were announced. Shares were priced at US$7.55, almost at the upper end of the price band, resulting in Rosneft's

capitalization Capitalization ( North American spelling; also British spelling in Oxford) or capitalisation (Commonwealth English; all other meanings) is writing a word with its first letter as a capital letter (uppercase letter) and the remaining letters in ...

—taking into account the upcoming consolidation of its subsidiaries—at a value of US$79.8 billion, making Rosneft surpass Lukoil as the largest oil company in Russia. Investors bought 1.38 billion shares for US$10.4 billion: 21% of the shares were bought by strategic investors, 36% from international investors from North America, Europe, and Asia, 39% from Russian investors, and 4% from Russian retail investors. 49.4% of the total IPO volume accounted for four investors, including BP for US$1 billion,

Petronas Petroliam Nasional Berhad, commonly known as PETRONAS (stylised in all caps), is a Malaysian Multinational corporation, multinational petroleum, oil and natural gas, gas company headquartered in Kuala Lumpur. Established in 1974, it is a lega ...

for US$1.5 billion, and the CNPC for $0.5 billion. Individuals submitted applications for the purchase of 99,431,775 shares of the oil company, and as a result, most of the new shareholders were individuals; partly because of this IPO was given the unofficial name of "people's." Rosneft's IPO became the largest in the history of Russia and the fifth in the world in terms of the amount of money raised at the time. The announced amount could increase by another US$400 million if the global placement coordinators realize the option of buying another 53 million GDRs of Rosneft at the price of placement within 30 days.

On Abkhazia

On 26 May 2009, a five-year cooperation agreement was negotiated between Rosneft and the

Abkhazia Abkhazia, officially the Republic of Abkhazia, is a List of states with limited recognition, partially recognised state in the South Caucasus, on the eastern coast of the Black Sea, at the intersection of Eastern Europe and West Asia. It cover ...

's Ministry of Economy. The parties stated their intention to develop mutually beneficial cooperation in areas as geological prospecting, development of oil and gas fields, production of

hydrocarbon In organic chemistry, a hydrocarbon is an organic compound consisting entirely of hydrogen and carbon. Hydrocarbons are examples of group 14 hydrides. Hydrocarbons are generally colourless and Hydrophobe, hydrophobic; their odor is usually fain ...

s, and sale of oil, natural gas and oil products. Rosneft undertook

on the shelf in the Ochamchire area, discovering preliminary reserves estimated at 200 million to 500 million tons of oil equivalent. In addition to drilling and creating its own sales network, Rosneft also planned the construction of mini-refineries in Abkhazia. According to Rosneft, the company provides more than half of the retail sales of oil products in Abkhazia. In 2014, Rosneft exported 47 thousand tons of oil products to Abkhazia. Since 2015, Rosneft has been supplying aviation fuel for Sukhumi Babushara Airport. As part of the project to develop the Gudauta area on the Black Sea shelf, Rosneft carried out a full range of geophysical and geochemical research, conduct 2D and 3D seismic surveys, and start preparations for exploratory drilling. In June 2014, Rosneft extended the shelf study period to five years. In July 2015, however, the new President of Abkhazia,

Raul Khajimba Raul Jumkovich Khajimba (, ka, რაულ ჯუმკას-ძე ჰაჯიმბა; born 21 March 1959) is an Abkhazians, Abkhazian politician who served as President of Abkhazia from 25 September 2014 until 12 January 2020. He was also ...

, who replaced Alexander Ankvab after his resignation, spoke out against the exploration and production of oil on the offshore shelf of Abkhazia and asked the People's Assembly to consider the possibility of establishing a "commission for the comprehensive study of issues related to the conclusion of contracts for exploration and production hydrocarbons by the previous Abkhaz leadership." A group of deputies of the People's Assembly drafted a bill banning the development of hydrocarbons in Abkhazia. Supporters of the bill demanded the prohibition of the development of the offshore shelf in Abkhazia for 30 years.

2010s

In September 2010, Eduard Khudainatov replaced Sergei Bogdanchikov as

CEO A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...

of the company. On 15 October 2010,

Russian President The president of Russia, officially the president of the Russian Federation (), is the executive head of state of Russia. The president is the chair of the Federal State Council and the supreme commander-in-chief of the Russian Armed Forces. I ...

Dmitry Medvedev Dmitry Anatolyevich Medvedev (born 14 September 1965) is a Russian politician and lawyer who has served as Deputy Chairman of the Security Council of Russia since 2020. Medvedev was also President of Russia between 2008 and 2012 and Prime Mini ...

signed an agreement with

President of Venezuela The president of Venezuela (), officially known as the president of the Bolivarian Republic of Venezuela (), is the executive head of state and head of government of Venezuela. The president leads the National Executive of the Venezuelan go ...

Hugo Chávez Hugo Rafael Chávez Frías (; ; 28 July 1954 – 5 March 2013) was a Venezuelan politician, Bolivarian Revolution, revolutionary, and Officer (armed forces), military officer who served as the 52nd president of Venezuela from 1999 until De ...

for the

PDVSA Petróleos de Venezuela, S.A. (acronym PDVSA, , English language, English: Petroleum of Venezuela) is the Venezuelan state-owned oil and natural gas company. It has activities in exploration, production, refining and exporting oil as well as e ...

to sell 50% of the shares of German company Ruhr Oel to Rosneft, giving Rosneft oil refining assets in Germany. Since 23 May 2012, former Deputy Prime Minister

Igor Sechin Igor Ivanovich Sechin (; born 7 September 1960) is a Russian entrepreneur and a government official, considered a close ally and "de facto deputy" of Vladimir Putin. Sechin has been a confidant of Russian leader Vladimir Putin since the early ...

became the company's CEO, succeeding Khudaynatov, who received the post of vice-president. In the summer of 2012, Rosneft purchased a fuel oil terminal from the

United Shipbuilding Corporation JSC United Shipbuilding Corporation (USC; , ОСК) is an open joint stock company in Russia which unites shipbuilding, repair and maintenance subsidiaries in western and northern Russia, and in the country's Far East, to streamline civilian ship ...

(USC) located on the territory of the Murmansk Ship Repair Plant No. 35. The transaction value is estimated at

28 million. According to ''

Kommersant (, , ''The Businessman'' or Commerce Man, often shortened to Ъ) is a nationally distributed daily newspaper published in Russia mostly devoted to politics and business. The TNS Media and NRS Russia certified July 2013 circulation of the daily ...

'', the Murmansk terminal can be used as a platform for Rosneft's activities in the Arctic. In October 2016, Rosneft bought a 49% stake in Essar Oil of India, along with Russian investment fund United Capital, in a deal worth $13 billion. On 7 December 2016, Rosneft signed a deal to sell 19.5% of the outstanding shares, or roughly US$11 billion, to the Anglo-Swiss multinational commodity trader

Glencore Glencore plc is an Anglo-Swiss Multinational corporation, multinational commodity trading and mining company with headquarters in Baar, Switzerland, Baar, Switzerland. Glencore's oil and gas headquarters are in London, London, England as well a ...

and the

Qatar Investment Authority The Qatar Investment Authority (QIA; ) is Qatar's sovereign wealth fund. The QIA was founded by the State of Qatar in 2005 to strengthen the country's economy by diversifying into new asset classes. In November 2024, the QIA had an estimated $526 ...

. Officially, the stake was split 50/50 between Glencore and Qatar, but Glencore contributed only €300 million and claims only a 0.54% stake. The ownership structure includes a

Cayman Islands The Cayman Islands () is a self-governing British Overseas Territories, British Overseas Territory, and the largest by population. The territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, which are located so ...

company, QHG Cayman Limited, whose ownership can not be traced. After the transaction, Rosneft's

holding company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...

Rosneftegaz retained 50% + 1 share of the company. On 2 October 2017, the

PLA Pla may refer to: People * Cecilio Plá (1860–1934), Spanish painter * Conrad Pla (born 1966), Canadian kickboxer and actor * Jim Pla (born 1992), French racing driver * Joan Baptista Pla (ca. 1720–1773), Spanish composer and oboist * Josefina ...

-linked

CEFC China Energy CEFC China Energy () was a Chinese conglomerate. The company was among the 10 largest private companies in China in 2014. In 2017, the company was listed as 222 on the Fortune Global 500. In March 2020, the company—along with its subsidiaries C ...

bought a $9 billion stake in Rosneft. On 26 September 2017, the Russian government controversially approved the former

German chancellor The chancellor of Germany, officially the federal chancellor of the Federal Republic of Germany, is the head of the federal government of Germany. The chancellor is the chief executive of the Federal Cabinet and heads the executive branch. Th ...

Gerhard Schröder Gerhard Fritz Kurt Schröder (; born 7 April 1944) is a German former politician and Lobbying, lobbyist who served as Chancellor of Germany from 1998 to 2005. From 1999 to 2004, he was also the Leader of the Social Democratic Party of Germany (S ...

as chairman of Rosneft. In May 2018, it was announced that the Qatar-Glencore consortium is cancelling the plan to sell a $9.1 billion (14%) stake of Rosneft to

. With the dissolution of the consortium, the

purchased the shares instead, thereby solidifying its position as one of the biggest shareholders (19%) of Rosneft. In the 2010s, the extensive contact between Rosneft and

ExxonMobil Exxon Mobil Corporation ( ) is an American multinational List of oil exploration and production companies, oil and gas corporation headquartered in Spring, Texas, a suburb of Houston. Founded as the Successors of Standard Oil, largest direct s ...

were further deepened, with Igor Sechin and

Rex Tillerson Rex Tillerson is an American energy executive who served as the 69th United States secretary of state from 2017 to 2018 in the first administration of Donald Trump. From 2006 to 2016, he was chairman and chief executive officer (CEO) of Exxon ...

getting to know each other personally.

Arctic shelf deals with BP and ExxonMobil

On 15 January 2011, Rosneft and BP announced a deal to develop the East-Prinovozemelsky field on the Russian arctic shelf between the

Yamal Peninsula The Yamal Peninsula () is located in the Yamalo-Nenets Autonomous Okrug of northwest Siberia, Russia. It extends roughly 700 km (435 mi) and is bordered principally by the Kara Sea and its Baydaratskaya Bay on the west, and by the G ...

and

Novaya Zemlya Novaya Zemlya (, also , ; , ; ), also spelled , is an archipelago in northern Russia. It is situated in the Arctic Ocean, in the extreme northeast of Europe, with Cape Flissingsky, on the northern island, considered the extreme points of Europe ...

island. As part of the deal Rosneft was to receive 5% of BP's shares, worth approximately $7.8 billion, as of January 2011 and BP would get approximately 9.5% of Rosneft's shares in exchange. According to the deal, the two companies would create an Arctic technology centre in Russia to develop technologies and engineering practices for safe arctic hydrocarbons extraction. AAR, which represents four billionaires of Russian origin and is BP's Russian partner in the

joint venture, blocked the BP–Rosneft deal in international courts, arguing it breached earlier contracts between BP and AAR. The TNK-BP partners had previously signed a shareholding agreement which stipulated that their Russian joint venture would be the primary corporate vehicle for BP's oil and gas operations in Russia. On 30 August 2011, Rosneft announced that instead of BP, the partner for EPNZ-1, EPNZ-2 and EPNZ-3 in the

Kara Sea The Kara Sea is a marginal sea, separated from the Barents Sea to the west by the Kara Strait and Novaya Zemlya, and from the Laptev Sea to the east by the Severnaya Zemlya archipelago. Ultimately the Kara, Barents and Laptev Seas are all ...

will be ExxonMobil. In exchange, subject to approval by U.S. regulators, in addition to a share in oil production in Russian fields, Rosneft was granted participation in U.S. fields in Texas and the Gulf of Mexico.

Black Sea shelf deal with ExxonMobil

On 27 January 2011, Rosneft and the American company

signed a deal to establish a

joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acce ...

for the purpose of prospecting and extracting oil from the Tuapse field deepwater area on the Black Sea shelf, near the coast of the

Krasnodar Krai Krasnodar Krai (, ) is a federal subjects of Russia, federal subject of Russia (a krai), located in the North Caucasus region in Southern Russia and is administratively a part of the Southern Federal District. Its administrative center is the t ...

. The value of the deal is unknown, but ExxonMobil is expected to invest $1 billion in the project. The venture will be shared 50–50 between the companies during prospecting phase, and two-thirds to one-third in Rosneft's favour during the extraction phase. The Tuapse Trough is estimated to contain 7.2 billion

barrels of oil equivalent The barrel of oil equivalent (BOE) is a unit of energy based on the approximate energy released by burning one barrel (, or about ) of crude oil. The BOE is used by oil and gas companies in their financial statements as a way of combining oil an ...

. The first well could be drilled in 2012. The deal also contains options for additional cooperation, such as extended exploration and production, deliveries to Rosneft's oil refinery in

Tuapse Tuapse (; , Ṫuapsă ) is a town in Krasnodar Krai, Russia, situated on the northeast shore of the Black Sea, south of Gelendzhik and north of Sochi. Population: Tuapse is a sea port and the northern center of a resort zone which extends sou ...

, development of transport infrastructure and research on offshore oil production technologies. According to analysts, offshore areas are central to Rosneft's expansionist plans, and the company is looking for foreign cooperation to bring in new technology and share risks. In April 2017, the

Trump administration Presidency of Donald Trump may refer to: * First presidency of Donald Trump, the United States presidential administration from 2017 to 2021 * Second presidency of Donald Trump, the United States presidential administration since 2025 See also * ...

denied ExxonMobil permission to continue a deal with Rosneft to drill for oil in Russia.

TNK-BP acquisition

On 22 October 2012, it was announced that Rosneft will take over TNK-BP International, a parent company of TNK-BP Holding, which is the third largest oil company in Russia. BP will receive in exchange of its stake $12.3 billion of cash and 18.5% of Rosneft's share, while ARR received $28 billion in cash. According to Rosneft's CEO

, no discussion was held on a buyout of minority shareholders in TNK-BP Holding. The deal was completed on 20 March 2013.

2020s

On 27 February 2022, BP announced that it would divest its 19.75% stake in Rosneft in response to the

Russian invasion of Ukraine On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...

that took place in February 2022. In 2022,

Trafigura Trafigura Group Pte. Ltd. is a Singaporean-based multinational commodities company, with major regional hubs in Geneva, Houston, Montevideo and Mumbai, founded in 1993. The company trades in base metals and energy. It is the world's largest pri ...

wound down its relationship with Rosneft, Rosneft asked

2Rivers 2Rivers, formerly Coral Energy, is a Dubai-based oil trading company engaged in the sale and export of Russian crude oil and petroleum products. Since 17 December 2024, the company has been under United Kingdom sanctions. 2Rivers was founded ...

to take Trafigura's place. The week beginning 19 April 2022, Rosneft attempted to sell millions of barrels of Urals, one of three main export-grade crude oils sold by Russia. The offer failed to attract any customers. Following the

2022 Russian invasion of Ukraine On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...

more than half of Rosneft's 11-member board had quit, forcing the company into a major reshuffle at its annual general meeting on 30 June 2022. Taieb Belmahdi, a former executive at Qatar's state-owned QE, has been elected chairman of the board to replace ex-German chancellor

who stepped down in May. In November 2023 a Rosneft subsidiary ''Sakhalinmorneftegaz-Shelf'' was given the job of managing

Sakhalin-I The Sakhalin-I () project, a sister project to Sakhalin-II, is a consortium for production of oil and gas on Sakhalin, Sakhalin Island and immediately offshore. It operates three natural gas field, fields in the Okhotsk Sea: Chayvo, Odoptu, and ...

with an 11.5% interest in the project. In January 2024, Ukrainian retaliatory drone strikes hit at least four oil and gas terminals across Russia, including Rosneft's Tuapse oil terminal on the Black Sea coast. On 13 March 2024, Ukrainian drones set fire to Rosneft's oil refinery in

Ryazan Ryazan (, ; also Riazan) is the largest types of inhabited localities in Russia, city and administrative center of Ryazan Oblast, Russia. The city is located on the banks of the Oka River in Central Russia, southeast of Moscow. As of the 2010 C ...

, the seventh largest in Russia, causing injuries according to the regional governor. The refinery is responsible for 8% of Russian aviation fuel, 6.4% of gasoline, 4.1% of diesel and 7.7% of fuel oil. Another drone was shot down over the Kirishi refinery, Russia's second largest, without causing damage or injuries.

Sanctions

On 16 July 2014, the

Obama administration Barack Obama's tenure as the 44th president of the United States began with his first inauguration on January 20, 2009, and ended on January 20, 2017. Obama, a Democrat from Illinois, took office following his victory over Republican nomine ...

imposed sanctions through the

US Department of Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States. It is one of 15 current U.S. government departments. The department oversees the Bureau of Engraving and ...

Office of Foreign Assets Control The Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency of the United States Department of the Treasury, United States Treasury Department. It administers and enforces economic and trade economic sanctions, ...

(OFAC) by adding Rosneft and other entities to the Sectoral Sanctions List (SSL) in retaliation for the annexation of the Crimean Peninsula by the

Kremlin The Moscow Kremlin (also the Kremlin) is a fortified complex in Moscow, Russia. Located in the centre of the country's capital city, the Moscow Kremlin (fortification), Kremlin comprises five palaces, four cathedrals, and the enclosing Mosco ...

and the ongoing Russian interference in Ukraine. On 12 September 2014 the United Kingdom also sanctioned Rosneft. The

first Trump administration Donald Trump's first tenure as the president of the United States began on January 20, 2017, when Trump First inauguration of Donald Trump, was inaugurated as the List of presidents of the United States, 45th president, and ended on January ...

expanded further sanctions on its Swiss-incorporated company (Rosneft Trading S.A.) and its president

Didier Casimiro Didier Casimiro (born 1966) is the Former First Vice President of Rosneft, the Russian state oil company. Since 2020 and till May 2022, Chairman of the Board of Directors of Bashneft In May 2022 resigned from Rosneft and all other related co ...

on 18 February 2020, for supporting Venezuela's

Nicolás Maduro Nicolás Maduro Moros (; born 23 November 1962) is a Venezuelan politician and former union leader serving as the 53rd president of Venezuela since 2013. Previously, he was the 24th Vice President of Venezuela, vice president from 2012 to 20 ...

regime by operating in the oil sector of the Venezuelan economy. In March 2022, as a result of the

the EU imposed sanctions on Rosneft. Rosneft was sanctioned by New Zealand.

Operations

Rosneft's daily average

crude oil Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring u ...

production in 2010 increased by 6.4%, to . Total crude oil output reached of oil and gas condensate. Rosneft is also among the largest

natural gas Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium ...

producers in Russia, with a total gas production of in 2010. Rosneft is engaged in exploration and production across all key oil and gas regions of Russia:

Western Siberia Western Siberia or West Siberia ( rus, Западная Сибирь, p=ˈzapədnəjə sʲɪˈbʲirʲ; , ) is a region in North Asia. It is part of the wider region of Siberia that is mostly located in the Russia, Russian Federation, with a Sout ...

, Southern and

Central Russia Central Russia is, broadly, the various areas in European Russia. Historically, the area of Central Russia varied based on the purpose for which it is being used. It may, for example, refer to European Russia (except the North Caucasus and ...

, Timan-Pechora,

Eastern Siberia Eastern Siberia is a part of Siberia that incorporates the territory located between the Yenisei River in the west and the Pacific Ocean divides in the east. Its area is equal to 7.2 million sq. km.Galina Samoylova (Г. С. Самойлова)В� ...

, the

Far East The Far East is the geographical region that encompasses the easternmost portion of the Asian continent, including North Asia, North, East Asia, East and Southeast Asia. South Asia is sometimes also included in the definition of the term. In mod ...

, and the shelf of Russia's

Arctic Ocean The Arctic Ocean is the smallest and shallowest of the world's five oceanic divisions. It spans an area of approximately and is the coldest of the world's oceans. The International Hydrographic Organization (IHO) recognizes it as an ocean, ...

. As of year-end 2010, Rosneft's total proved oil and gas reserves under PRMS classification was of oil equivalent, among the highest for a

petroleum company worldwide. Rosneft is also second-to-none in terms of total proved liquid hydrocarbon reserves. In 2016, based on geological prospecting, 13 oil fields and 127 new deposits with the reserves totaling 207 million tons of oil equivalent were discovered. The replacement of hydrocarbon reserves of industrial categories ABC1 amounted to 354 million TOE or 126% of the production in Russia. The replacement factor for new reserves has been significantly above 100% for over ten years. According to Rosneft, the reserves increment in

amounted to 133 million tons of oil and condensate and of natural gas. 37 prospecting and exploration wells tests were completed with a success rate of 89%. 45 new deposits with the total reserve of 59 million tons of AB1С1 + В2С2 were discovered. In

and the

, the total increase in reserves amounted to 21.2 million tons of oil and condensate and of gas. 11 exploration well tests were completed with a success rate of 55%. Five new deposits with reserves of 39 million tons of oil equivalent were discovered. In 2016, the total incremental of gas. 37 well tests were completed with a success rate of 76%. Rosneft owns and operates seven large refineries in Russia with an aggregate annual capacity of and four mini-refineries. The refineries are able to process about 45% of crude oil produced by Rosneft as a whole. Rosneft owns a 50% stake in Ruhr Oel GmbH, the owner of stakes in four refineries in Germany with overall capacity of 23.2 million tonnes. A 54% stake in the PCK refinery in

Schwedt Schwedt (or Schwedt/Oder; ) is a town in Brandenburg, in northeastern Germany. With the official status of a ''Große Kreisstadt, Große kreisangehörige Stadt'' (major district town), it is the largest town of the Uckermark (district), Uckermark ...

was put into trusteeship by the German government in September 2022 as a result of the Russian attacks on Ukraine. In August 2024, it was revealed that Qatar was planning on purchasing Rosneft’s stakes through negotiations held between the Secretary of State of the German Chancellery, Joerg Kukies, and the CEO of the Qatar Investment Authority, Mansoor Ebrahim Al-Mahmoud. In September 2024, the German government announced it would extend the trusteeship until 10 March 2025, with the anticipation of a sale of assets to Qatar. Rosneft is the second largest national oil company by retail network, which covers 41

regions of Russia In geography, regions, otherwise referred to as areas, zones, lands or territories, are portions of the Earth's surface that are broadly divided by physical characteristics (physical geography), human impact characteristics (human geography), and ...

and includes 1,800

filling station A filling station (also known as a gas station [] or petrol station []) is a facility that sells fuel and engine lubricants for motor vehicles. The most common fuels sold are gasoline (or petrol) and diesel fuel. Fuel dispensers are used to ...

s. In March 2020, the company stopped its operations in Venezuela and sold all of its assets in the country to another unnamed company that is owned by the Russian government. Rosneft owns several subsidiaries, amongst which is Rosneftflot, its sea transportation unit to own and manage vessels. By 2018 they had contracted 26 vessels, including 12 polar-capable oil tankers, with

Zvezda Shipyard Zvezda Shipbuilding Complex () is a Russian shipbuilding company that operates the country's largest shipyard in the town of Bolshoy Kamen in Primorsky Krai across the bay from Vladivostok. Established in 2015 by a consortium of investors led b ...

Corporate affairs

Shareholders

Prior to the

(IPO) in 2006, all of Rosneft's

shares In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation. It can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Sha ...

were owned by the

through its

JSC

. After the placement of the company's shares on the stock exchange and the consolidation of shares of 12 subsidiaries (including Yuganskneftegaz) of Rosneft, the share of Rosneftegaz decreased to 75.16%. As of September 2012, Rosneft had over 160,000 shareholders. By December 2016, the number of individual shareholders was 138,000, with Rosneftegaz owning only 50% of the shares, BP owning 19.75%, and 30.25% owned by other shareholders. In August 2021

increased his own share at Rosneft from 0.1273% up to 0.1288%.

Management

Board of directors

Members of the board of directors (as of June 2022): * Taieb Belmahdi –

Chairman The chair, also chairman, chairwoman, or chairperson, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the gro ...

–

, Deputy Chairman * Aleksander Nekipelov – Deputy Chairman, Independent director * Andrey Akimov * Hamad Rashid Al-Mohannadi * Faisal Alsuwaidi * Pedro А. Aquino, Jr. * Vladimir Litvinenko *

Alexander Novak Alexander Valentinovich Novak (; born 23 August 1971 in Avdiivka, Donetsk Oblast, Ukraine SSR) is a Russian politician who is a current Deputy Prime Minister of Russia since November 2020. Previously, he was the Minister of Energy of Russia ...

* Maxim Oreshkin * Aleksandr Uss

Management board

Members of the management board: * Igor Sechin – CEO, Chairman * Yuri Kalinin – Deputy Chairman,

Vice President A vice president or vice-president, also director in British English, is an officer in government or business who is below the president (chief executive officer) in rank. It can also refer to executive vice presidents, signifying that the vi ...

* Eric M. Liron – First Vice President * Gennady Bukaev – Vice President, Head of Internal Audit *

– Vice President for

Refining Refining is the process of purification of a (1) substance or a (2) form. The term is usually used of a natural resource that is almost in a usable form, but which is more useful in its pure form. For instance, most types of natural petroleum w ...

Petrochemical Petrochemicals (sometimes abbreviated as petchems) are the chemical products obtained from petroleum by refining. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable s ...

Commerce Commerce is the organized Complex system, system of activities, functions, procedures and institutions that directly or indirectly contribute to the smooth, unhindered large-scale exchange (distribution through Financial transaction, transactiona ...

, and

Logistics Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the Consumption (economics), point of consumption according to the ...

* Peter Lazarev – Financial director * Yury Narushevich – Vice President for Internal Services * Zeljko Runje – Vice President for Offshore Projects * Yuri Kurilin – Vice President, Chief of Staff * Andrey Shishkin – Vice President for Energy, Localization, and Innovation * Stuart Goodreid – Vice President

Social policy

In 2011, according to Rosneft, the company had donated $422 million to charity, 4 times than the previous year, becoming the leading Russian company devoted to

philanthropy Philanthropy is a form of altruism that consists of "private initiatives for the Public good (economics), public good, focusing on quality of life". Philanthropy contrasts with business initiatives, which are private initiatives for private goo ...

that year. At the same time, the composition of the beneficiaries was not disclosed as it was known that the oil company had previously committed to pay $180 million for the right to be the general sponsor of the

2014 Winter Olympics The 2014 Winter Olympics, officially called the XXII Olympic Winter Games () and commonly known as Sochi 2014 (), were an international winter multi-sport event that was held from 7 to 23 February 2014 in Sochi, Russia. Opening ro ...

Sochi Sochi ( rus, Сочи, p=ˈsotɕɪ, a=Ru-Сочи.ogg, from – ''seaside'') is the largest Resort town, resort city in Russia. The city is situated on the Sochi (river), Sochi River, along the Black Sea in the North Caucasus of Souther ...

. Since 2012, Rosneft, along with

Gazprom PJSC Gazprom ( rus, Газпром, , ɡɐsˈprom) is a Russian State-owned enterprise, majority state-owned multinational Energy industry, energy corporation headquartered in the Lakhta Center in Saint Petersburg. The Gazprom name is a contract ...

, has been the title sponsor of the

association football Association football, more commonly known as football or soccer, is a team sport played between two teams of 11 Football player, players who almost exclusively use their feet to propel a Ball (association football), ball around a rectangular f ...

team

FC Tom Tomsk FC Tom Tomsk () was a Russian professional football club, based in the Siberian city of Tomsk. The team played in Trud Stadium (Tomsk) before being dissolved in 2022. History The team was previously named ''Burevestnik'' (1957), ''Tomich'' (19 ...

based in

Tomsk Tomsk (, ) is a types of inhabited localities in Russia, city and the administrative center of Tomsk Oblast in Russia, on the Tom (river), Tom River. Population: Founded in 1604, Tomsk is one of the oldest cities in Siberia. It has six univers ...

. Rosneft has been ranked as among the 13th best of 92 oil, gas, and mining companies on indigenous rights and resource extraction in the Arctic.

Controversies

Violations of anti-monopoly legislation

In October 2009, the

Federal Antimonopoly Service The Federal Antimonopoly Service of Russia (FAS) () is the federal-level executive governmental organ that controls the execution of the antitrust law and related areas. The FAS was established by President Vladimir Putin through Decree #314, ...

(FAS) imposed on Rosneft a record fine of ₽5.3 billion ($175M) for violating anti-monopoly legislation. The fine was imposed for the abuse of power in the petroleum market recorded in the first half of 2009, which was expressed in the "seizure of goods from circulation, which led to higher prices in the wholesale segment of the oil products market, creating discriminatory conditions for the sale of oil products to individual counter-parties." As FAS has calculated, these actions led to an increase in prices in the wholesale markets of motor gasoline,

diesel fuel Diesel fuel, also called diesel oil, heavy oil (historically) or simply diesel, is any liquid fuel specifically designed for use in a diesel engine, a type of internal combustion engine in which fuel ignition takes place without a spark as a re ...

, and aviation

kerosene Kerosene, or paraffin, is a combustibility, combustible hydrocarbon liquid which is derived from petroleum. It is widely used as a fuel in Aviation fuel, aviation as well as households. Its name derives from the Greek (''kērós'') meaning " ...

in the first half of 2009.

Western claims from Yukos Capital

On 9 August 2010, a former subsidiary of

, Yukos Capital Sarl of Luxembourg, was seeking to have Rosneft repay the debts of companies that previously belonged to Yukos. After the seizure of Rosneft's assets in the United Kingdom and the denial of an appeal by the

Supreme Court of the Netherlands The Supreme Court of the Netherlands ( or simply ''Hoge Raad''), officially the High Council of the Netherlands, is the final court of appeal in civil, criminal and tax cases in the Netherlands, including Curaçao, Sint Maarten and Aruba. Th ...

, Rosneft said that Yukos Capital paid Yuganskneftegaz its debt of ₽12.9 billion ($426M). On 16 August 2010, Yukos Capital appealed to the Federal Arbitration Court of the West Siberian District with a

cassation A court of cassation is a high-instance court that exists in some judicial systems. Courts of cassation do not re-examine the facts of a case; they only interpret the relevant law. In this, they are appellate courts of the highest instance. In ...

appeal against the decision of the Arbitration Court of Tomsk Oblast to refuse reclaiming from

Tomskneft JSC Tomskneft VNK — is a Russian petroleum, oil and natural gas, gas company, headquartered in Strezhevoy, Russia. Founded in 1966, Tomskneft is one of the largest companies of the Tomsk Oblast, Tomsk region and Siberia. As of 2022, the Indepe ...

, a Rosneft subsidiary, more than ₽7 billion ($231M) under loan agreements. Previously, Yukos Capital applied to international arbitration under the

International Chamber of Commerce The International Chamber of Commerce (ICC; French: ''Chambre de commerce internationale'') is the largest, most representative business organization in the world. ICC represents over 45 million businesses in over 170 countries who have interest ...

, and it obliged Tomskneft to pay ₽7,254.2 million ($239M), $275,200, and £52,960, with an

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...

of 9% per annum for the amount of ₽4,350 million ($144M), starting from 12 February 2009 until the day of payment of the debt. The Russian court had to bring the court's decision to Russian territory. However, the Arbitration Court of Tomsk Oblast, having considered the claim, ruled to refuse Yukos Capital in debt collection.

Ulyukayev lawsuit

On 15 December 2017, a Moscow court sentenced Alexei Ulyukayev, a former Russian economy minister to pay ₽130M ($2.2M) and eight years in a penal colony for bribery and corruption. The case was widely seen as Rosneft CEO Sechin’s revenge for Ulyukayev opposing Rosneft’s takeover of Bashneft, another oil company. The 61-year-old claimed that Sechin had lured him to Rosneft's offices, where he was subsequently caught red-handed by the authorities with a bag of bribe money. According to investigators, Ulyukayev, who was still economy minister at the time of his arrest, had taken the $2M bribe in exchange for permitting Rosneft's acquisition of a stake in Bashneft. Ulyukayev retorted that the "fabricated" accusations of bribery were "based solely on Sechin's claims," and that the whole exchange had been engineered by the Russian

Federal Security Service The Federal Security Service of the Russian Federation �СБ, ФСБ России (FSB) is the principal security agency of Russia and the main successor agency to the Soviet Union's KGB; its immediate predecessor was the Federal Counterin ...

, the successor of the

KGB The Committee for State Security (, ), abbreviated as KGB (, ; ) was the main security agency of the Soviet Union from 1954 to 1991. It was the direct successor of preceding Soviet secret police agencies including the Cheka, Joint State Polit ...

. Ulyukayev was seen as an economic liberal, Igor Sechin is viewed as a hawk, who supports greater state control over the economy. Ulyukayev, while influential, was not part of President Putin's inner circle.

Oil spills

The Russian branch of

Greenpeace Greenpeace is an independent global campaigning network, founded in Canada in 1971 by a group of Environmental movement, environmental activists. Greenpeace states its goal is to "ensure the ability of the Earth to nurture life in all its biod ...

called Rosneft the dirtiest oil company in the world. In 2011, according to a survey conducted by the Federal Service for Supervision in the Sphere of Nature Management (Rosprirodnadzor) in

Khanty-Mansi Autonomous Okrug Khanty-Mansi Autonomous Okrug–Yugra, also known as Khanty-Mansia (Khantia-Mansia), is a federal subject of Russia (an autonomous okrug of Tyumen Oblast). It has a population of 1,532,243 as of the 2010 Census. Its administrative center is lo ...

, Rosneft allowed 2,727 oil spills, which is 75% of the total number of spills that occurs under the company. According to environmentalists, it is Rosneft's fault that more than 10,000 oil spills occur each year. The Hydrometeorological Centre of Russia has estimated that 4.5m tonnes of oil are spilled on the

Russia Russia, or the Russian Federation, is a country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...

n mainland every year, that's seven times the BP Deepwater Horizon spill in the

Gulf of Mexico The Gulf of Mexico () is an oceanic basin and a marginal sea of the Atlantic Ocean, mostly surrounded by the North American continent. It is bounded on the northeast, north, and northwest by the Gulf Coast of the United States; on the southw ...

in 2010. Often blamed is Rosneft's ageing infrastructure, so is the lack of government oversight. As a result of the environmental contamination, people have observed black water coming out of their taps, cattle have been stricken with tuberculosis, and fish have been found deformed.

Fracking

In the first half of the 2000s, Sergei Bogdanchikov, then president of Rosneft, along with some journalists and experts, criticized Yukos and

Sibneft Gazprom Neft (; formerly Sibneft, ) is the third largest Petroleum industry, oil producer in Russia and ranked third according to Oil refinery, refining throughput. It is a subsidiary of Gazprom, which owns about 96% of its shares. The company is ...

for their use of

hydraulic fracturing Fracking (also known as hydraulic fracturing, fracing, hydrofracturing, or hydrofracking) is a well stimulation technique involving the fracturing of Formation (geology), formations in bedrock by a pressurized liquid. The process involves the ...

. However, in early November 2006, a number of journalists pointed out that the Priobskoye oil field of which it is owned by RN-Yuganskneftegaz, a subsidiary of Rosneft acquired from Yukos, produced the largest oil fracture in Russia with specialists of Newco Well Service. The operation was conducted for seven hours and was broadcast live via the Internet to the office of Yuganskneftegaz. In 2007, the company planned to perform hydraulic fracturing of the formation at 440 wells. From 2009 to 2010, Rosneft was one of the largest customers of the oilfield services company

Schlumberger Schlumberger (), doing business as SLB, is a global multinational oilfield services company. Founded in France in 1926, the company is now incorporated as Schlumberger NV in Willemstad, Curaçao, with principal executive offices in Houston ...

, which specializes in hydraulic fracturing.

Sanctions

On 20 March 2014, the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

government sanctioned Rosneft CEO Igor Sechin in response to the Russian government's role in the unrest in Ukraine. The sanctions include a travel ban to the United States, freezing of all assets of Sechin in the United States and a ban on business transactions between American citizens and corporations and Sechin and businesses he owns. On 24 February 2022, his son Ivan Sechin was also sanctioned by the U.S. On 28 February 2022,

was subjected to travel restrictions and had his assets frozen by the EU. Rosneft and many of its subsidiaries have been sanctioned in the past and appear on the Sectoral Sanctions Identification (SSI) List. Rosneft was added to the SSI on 16 July 2014, and was sanctioned by the EU on 8 September 2014. On 18 February 2020, the US Department of the Treasury’s Office of Foreign Assets Control ("OFAC") added Rosneft Trading S.A., a Swiss subsidiary of Rosneft, and its president

to the Specially Designated Nationals (“SDN”) list.

Transparency

As of 1 May 2014, the heads of

Russian state corporations Russian(s) may refer to: *Russians (), an ethnic group of the East Slavic peoples, primarily living in Russia and neighboring countries *A citizen of Russia *Russian language, the most widely spoken of the Slavic languages *''The Russians'', a b ...

provided information about their incomes and property to the Russian government to correspond to the

presidential decree A decree is a legal proclamation, usually issued by a head of state, judge, royal figure, or other relevant authorities, according to certain procedures. These procedures are usually defined by the constitution, Legislative laws, or customary l ...

Anti-Corruption Issues, which was published on 8 July 2013. According to the ruling, websites of the companies should show the personal information of their top managers such as income, property, spouses, and children. However, Rosneft refused to publish its information of top managers, citing that it is only applicable to "state companies (corporations) and other organizations created by federal laws," to which it does not believe itself to be. However, this did not prevent the company from providing information regarding the incomes and property of Rosneft's top managers and their relatives to "competent authorities" in the prescribed "time and amount". According to the director of the Russian branch of

Transparency International Transparency International e.V. (TI) is a German registered association founded in 1993 by former employees of the World Bank. Based in Berlin, its nonprofit and non-governmental purpose is to take action to combat global corruption with civil s ...

, Elena Panfilova, improvement of such legislation is necessary so that state corporations can unequivocally interpret the norm on the publication of personal information. In July, the Russian government announced that information of the income of top management of companies listed in Government Decree No. 613 22 July 2013 which includes Rosneft, "are subject to placement in the information and telecommunications network 'Internet' on the official websites of these organizations."

References

External links

*
Rosneft Oil production, refining, reserves and capex by division, segment and period (Grmike, wikinvest)

Rosneft Oil analytics information

Rosneft ecosystem in Russia (2013)
{{Authority control Russian companies established in 1993 Companies based in Moscow Companies listed on the London Stock Exchange Companies listed on the Moscow Exchange Companies in the MOEX Energy companies established in 1993 Government-owned companies of Russia Rus Natural gas companies of Russia Oil companies of Russia Russian brands Russian entities subject to U.S. Department of the Treasury sanctions Yukos

History

Origins

1990s

2000s

Acquisition of assets of Yukos

Initial public offering of 2006

On Abkhazia

2010s

Arctic shelf deals with BP and ExxonMobil

Black Sea shelf deal with ExxonMobil

TNK-BP acquisition

2020s

Sanctions

Operations

Corporate affairs

Shareholders

Management

Board of directors

Management board

Social policy

Controversies

Violations of anti-monopoly legislation

Western claims from Yukos Capital

Ulyukayev lawsuit

Oil spills

Fracking

Sanctions

Transparency

See also

References

Further reading

External links