Russia energy

Russia brushed off the threat of western energy sanctions on Friday and pledged to press ahead with plans to build a new gas export pipeline that would strengthen its hold on European gas markets.

Russia is continuing work on the 2,500km South Stream pipeline that will carry gas across the Black Sea to southern and central Europe, Alexander Novak, Russian energy minister told a press conference in Moscow on Friday. Continue reading »

Russia is pushing ahead with a $4.9bn project to expand the East Siberian Pacific Ocean oil export pipeline as surging oil demand from China and other east Asian consumers attracts oil sales at the expense of Europe.

Transneft, Russia’s state pipeline monopoly, won government approval for its investment program on Tuesday clearing the way for Espo’s capacity to more than double by 2020. Continue reading »

Russia’s second largest oil producer Lukoil has put on ice its plans to list on the Hong Kong Stock Exchange. Lack of an accord between Russian and Hong Kong regulators means Lukoil has, for now, shelved its plans for a $1bn to $2bn secondary listing.

This is despite the company being keen to find Chinese partners for its big overseas operations as it gears up to ship more oil and products to the Asian giant. Continue reading »

Russian gas exports to Europe jumped by 25 per cent in September, continuing a year-on-year rally that has been supporting sentiment towards Gazprom’s stock. While investors in Gazprom can expect fatter dividends this year on the back of rising export earnings, there’s a risk that the surge in European demand for Russian gas will be short-lived. 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 »

The hunt is on to replicate the US’s shale boom, and Russia is seen as a contender. FT energy editor Guy Chazan visits the Bazhenov shale formation in western Siberia, where Russian and foreign companies are trying to extract its riches.

Photo: Bloomberg

Commonsense would suggest that TNK-BP, in the process of being swallowed up by Rosneft, would be collaborating with Russia’s state oil company by now.

Instead the Anglo-Russian oil major went head to head with Rosneft at the auction of a big east Siberian oil field last month and came out on top. Continue reading »

By Ben Aris of bne

Its back to the drawing board for Russia’s utilities reform.

The Russian government admitted at the end of last week reforms designed to set the regulated tariff rates have been driving badly needed investors away from the sector. Continue reading »

Monopolies would not be monopolies if they accommodated competition. So it’s not surprising that Gazprom appears to have its back to the wall. In Europe the Russian company is facing an anti-trust investigation for suspected abuse of its dominant market position. In Russia a simmering battle between Gazprom and the increasingly assertive independent gas producers has bubbled over into the open. As often happens in Russian gas disputes, Gazprom appears to be taking rather heavy handed action. Continue reading »