Russia - 04

Russia: Power of Siberia: Gazprom Accepts Supply Deadline and Major Losses

In early June, Gazprom and CNPC signed an agreement specifying the start of gas deliveries through the Power of Siberia (PoS) pipeline. Gazprom has committed to launch the pipeline by 20 December 2019, about one year ahead of the deadline stipulated in the 2014 gas supply agreement between the two companies. The commitment was inked

Russia - 05

Russia: Opening the Black Box: Government Seeks Access to Rosneftegaz Accounts

The government has renewed efforts to access the accounts of Rosneftegaz, the state-owned company that holds government stakes in Gazprom, Rosneft and Inter RAO. Earlier this month, head of the government’s economy and finance department Vladimir Sidorenko issued a letter requesting that Rosneftegaz’s financial information is made available to the government.

Russia - 06

Russia: Sistema’s Plight: Sechin Returns to Bankrupt Yevtushenkov

On 6 June the Bashkortostan Arbitration Court held a preliminary hearing on Rosneft’s lawsuit against Sistema. The court accepted Rosneft’s new estimate of the damages it wishes to recover, which went up from $1.9bn in May to $3bn this month. The court’s willingness to accommodate Rosneft’s requests – for instance, to accept Sistema’s internal correspondence

Russia - 03

Russia: The Fox Guarding the Henhouse: Gazprom Deploys Rotenberg to Deter Novatek

On 24 May Gazprom Deputy CEO Vitaliy Markelov ruled out a partnership between Gazprom and Novatek to develop the Tambei group of fields. Gazprom controls several major gas fields in the cluster, which is located in the northeast of the Yamal peninsula and includes North-Tambeiskoye, West-Tambeiskoye, Malyginskoye and Tasiyskoye. In early May, Gazprom CEO Aleksei

Russia - 01

Russia: Dividend Squeeze: State-Owned Companies Defund the Government

At a press briefing during his visit to China on 15 May, Putin addressed the issue of dividend payments by state-owned firms. Last year, the government set these dividends at the rate of at least 50% of the firms’ net incomes. They can be calculated in accordance with the International Accounting Standards (IAS) or Russian

Russia - 04

Russia: Gazprom: Financial Dark Clouds, But Bright Political Outlook

Gazprom’s 2016 financial results reported last week have received positive media coverage, with the monopoly’s 20% increase in net profits making headlines. The picture behind the profit numbers, however, is not as rosy. As much as half of the profits is attributed to foreign exchange gains caused by the rouble’s appreciation in 2016. In the

Russia - 05

Russia: Putin and Regional Governors: Confusion Amid Arrests

On 13 April the FSB arrested Leonid Markelov, who had just resigned as the governor of Mari El Republic, an underdeveloped region in the Volga basin. Markelov, who was charged with corruption, will hardly be missed in the region. One of the country’s most eccentric governors, he made his mark building full-size copies of Venetian

Russia - 06

Russia: Government Likely to Reject Rosneft’s Midstream Fiscal Breaks Request

In the first test case following President Putin’s order to Sechin to stop challenging the government with demands for benefits, the cabinet will likely reject Rosneft’s request for fiscal breaks for its refineries. Sechin made the request last year, and in February, Rosneft First Vice President Pavel Fedorov suggested that the company would freeze the

Russia - 03

Russia: Putin Restrains Sechin’s Ambitions

For the first time in the last few years, President Vladimir Putin has ordered Rosneft CEO Igor Sechin to restrain his ambitions. Putin’s order specifically concerned the latest standoff between Sechin and Transneft President Nikolai Tokarev, but its implications are far wider. Sechin was ordered to dismantle the security team at Rosneft and stop flooding