Russia is rethinking investor friendly dividend reforms as the Ukrainian crisis weighs on its faltering economy. Rules introduced last year that would oblige state companies to put more of their profits in shareholders’ pockets may be shelved, according to a report out on Wednesday.
Russia has been pushing state companies to pay more generous dividends in an effort to improve the country’s investment image and boost interest in upcoming privatisations. Rules introduced in late 2012 setting a minimum 25 per cent pay out were a step in the right direction but, as often happens with Russian regulations, there was room for interpretation. Continue reading »
By Bruce Misamore, former CFO of Yukos
As the world flails about looking for ways to get Russia’s attention over the Ukraine and Crimean crises, and Vladimir Putin looks on impassively, the UK has a unique opportunity to take a long overdue and meaningful action: delist Rosneft from the London Stock Exchange. Continue reading »
By Leslie Palti-Guzman of Eurasia Group and Tatiana Mitrova of the Russian Academy of Sciences
As the global market for natural gas is transformed, Russia and its national champion Gazprom have found their long-term export strategy challenged. No longer able to rely on their core European market, the Russians are looking eastwards, where they have long been seeking a strategic gas deal between Gazprom and the China National Petroleum Corp (CNPC) that would provide an easily accessible market for gas from new fields in eastern Siberia. Continue reading »
The Russian parliament dealt Gazprom a blow on Friday, passing legislation that will allow independent gas producers to export liquefied natural gas.
But read the small print of the law and it’s not as bad for Russia’s natural gas monopoly as it sounds. Only two independents will be permitted to muscle into the LNG export business and the scope of their operations will be limited to specific gas fields. Continue reading »
Russia and Vietnam signed a raft of economic agreements on Tuesday that will strengthen their strategic partnership and counter rising Chinese influence in southeast Asia.
The deals, signed during a visit by Vladimir Putin to Vietnam, will see Russia step up involvement in Vietnamese energy markets and help boost security in the country that has been a close Kremlin ally since Soviet times. “Vietnam has been a long-term, trustworthy partner for Russia and the political dialogue between the two countries is at a high level,” Putin told reporters after talks with Truong Tan Sang, his Vietnamese counterpart. Continue reading »
Scheme of the ESPO oil pipeline route | Source: Centre for Eastern Studies
Rosneft’s plans to step up oil deliveries to China will strain Russia’s new eastern oriented export pipelines to the limit. A preliminary deal struck on Monday will see Kazakhstan come to the rescue shipping oil on Rosneft’s behalf through its own pipeline to the Chinese frontier.
It’s a set back for Transneft, but the Russian state oil pipeline monopoly will probably have to lump it. Continue reading »
Rosneft has agreed to allow CNPC to help develop east Siberian oil resources in a move that underscores deepening energy ties between Russia and China. Coming on the eve of an official visit by Dmitry Medvedev to Beijing, the deal provides a positive backdrop for talks about a long delayed contract for Gazprom to supply gas by pipeline to China.
Rosneft and CNPC signed a memorandum on Friday calling for the creation of a joint venture to explore and produce oil in east Siberia. Development of Srednebotuobinsk, a world class oilfield sitting close to the East Siberia Pacific Oil export pipeline (Espo), will serve as the foundation of the future venture, Rosneft said in a statement. Continue reading »
Sechin: he seems friendly
The cash-strapped government of Belarus is preparing to re-start its privatisation programme, stalled since last year. It plans to sell stakes in a few dozen state-owned companies and Mozyr refinery, one of two in the country, is the jewel in the crown.
It seems that Russia’s Rosneft, which already partly controls Mozyr with Gazpromneft, the oil arm of Russian state gas giant Gazprom, is among the biggest potential bidders. Continue reading »
Be nice to the little guy
Rosneft has finally caved in to pressure and offered to buy out minority shareholders in TNK-BP at a premium to the market price.
Minorities believe they got a raw deal when Rosneft took over the Anglo-Russian oil major this year and are hoping to do better. Rosneft thinks it’s doing them a favour, but the end to this saga is still a long way off. Continue reading »
Never mind the breathtaking debts Rosneft ran up buying TNK-BP this year, Russia’s state oil company is still out on an asset shopping spree. In a deal announced on Tuesday Rosneft will splash out $1.8bn to acquire a large stake in a Russian gas producing venture from Enel, the financially troubled European utility. Continue reading »
Minority shareholders in TNK-BP got a raw deal when Rosneft took over the Anglo-Russian oil major this year.
But even if the odds are stacked against them, they’re not yet ready to give up the fight. Having failed to persuade Igor Sechin, Rosneft’s chief executive, to offer a fair price for their shares, the minorities have taken the bold step of launching a personal attack on the close associate of president Vladimir Putin. Continue reading »
Rosneft has bolstered its position in the Russian gas market by taking full control of Itera, an independent gas producer and trader. Announcing the deal on Tuesday, Rosneft reiterated its goal of becoming Russia’s biggest independent gas company, with production second only to that of Gazprom.
Rosneft has invested $2.9bn to acquire the 49 per cent of Itera that it does not already own. “The gas business is one of the top priorities,” Igor Sechin, Rosneft’s chief executive (pictured), said in a statement on Tuesday. Continue reading »
By Lord Ponsonby, chairman of Yakut Energy
A change is underway in Russia. Despite its size and variety of European and Asian neighbours, Russia’s role as an exporter of oil has traditionally tended to focus on its western borders. However, there are signs that the country’s efforts are now flowing eastwards instead. The announced deal between Rosneft and China for supply of $270bn worth of oil over the next 25 years shows how serious Russia’s shift east is. Continue reading »
Norway has been producing oil offshore since the 1970s and hardly needs help from relatively inexperienced Russia.
So presumably it’s for strategic reasons that Norway’s energy ministry decided this week to award Russian oil companies rights to explore on the Norwegian continental shelf for the first time. The two countries do after all share an offshore frontier. Continue reading »
Rosneft has been warning minority shareholders in TNK-BP not to expect any favours, ever since it took over the Anglo-Russian oil producer. All the same, it’s a disappointment for these shareholders – who have regularly received fat payouts – to learn on Thursday that they won’t be getting any dividends this year.
Minority shareholders – mostly foreign long term investors – hold around 5 per cent of TNK-BP Holding, the listed unit of TNK-BP, that was acquired by Rosneft together with the parent company in a deal announced last year and completed this March. Continue reading »