Russneft () is a Russian oil company headquartered in Moscow which was established by
Mikhail Gutseriev
Mikail (Mikhail) Safarbekovich Gutseriev (russian: Михаи́л Сафарбе́кович Гуцери́ев; born 9 March 1958 in Akmolinsk, Kazakh SSR, Soviet Union) is a Russian billionaire businessperson. Gutseriev earned his fortune aft ...
in 2002. It is a member of the
SAFMAR industrial and financial group.
Background
Russneft was founded in September 2002 by Mikhail Gutseriev, a Russian businessperson and philanthropist, with support from the Swiss company
Glencore
Glencore plc is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. Glencore's oil and gas head office is in London and its registered office is in Saint Helier, Jersey. The current company was c ...
. It included early oil-production operations in
West Siberia
Western Siberia or West Siberia (russian: Западная Сибирь, Zapadnaya Sibir'; kk, Батыс Сібір) is a part of the larger region of Siberia that is mostly located in the Russian Federation. It lies between the Ural region an ...
,
Ulyanovsk
Ulyanovsk, known until 1924 as Simbirsk, is a city and the administrative center of Ulyanovsk Oblast, Russia, located on the Volga River east of Moscow. Population:
The city, founded as Simbirsk (), was the birthplace of Vladimir Lenin (born ...
, the
Saratov
Saratov (, ; rus, Сара́тов, a=Ru-Saratov.ogg, p=sɐˈratəf) is the largest city and administrative center of Saratov Oblast, Russia, and a major port on the Volga River upstream (north) of Volgograd. Saratov had a population of 901,36 ...
and
Penza
Penza ( rus, Пе́нза, p=ˈpʲɛnzə) is the largest city and administrative center of Penza Oblast, Russia. It is located on the Sura River, southeast of Moscow. As of the 2010 Census, Penza had a population of 517,311, making it the 38th-l ...
regions,
Udmurtia
Udmurtia (russian: Удму́ртия, r=Udmúrtiya, p=ʊˈdmurtʲɪjə; udm, Удмуртия, ''Udmurtija''), or the Udmurt Republic (russian: Удмуртская Республика, udm, Удмурт Республика, Удмурт ...
, and the
Komi Republic
The Komi Republic (russian: Республика Коми; kv, Коми Республика), sometimes simply referred to as Komi, is a republic of Russia located in Eastern Europe. Its capital is the city of Syktyvkar. The population of the ...
. Russneft purchased oil processing and distribution plants in
Orenburg Oblast
Orenburg Oblast (russian: Оренбургская область, ''Orenburgskaya oblast'') is a federal subject of Russia (an oblast). Its administrative center is the city of Orenburg. From 1938 to 1957, it bore the name ''Chkalov Oblast'' () ...
and
Krasnodar Krai
Krasnodar Krai (russian: Краснода́рский край, r=Krasnodarsky kray, p=krəsnɐˈdarskʲɪj kraj) is a federal subject of Russia (a krai), located in the North Caucasus region in Southern Russia and administratively a part of t ...
regions in 2006, becoming a
vertically-integrated oil
holding company
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
. It is one of Russia's top ten vertically-integrated oil companies, producing 10 million tons and processing nine million tons.
Some of Russneft's assets were transferred to the oil-processing holding companies Forteinvest and NK Neftisa, both owned by Gutseriev. The Khanty-Mansi oil company and the Nazymskaya oil and gas exploration expedition, both in West Siberia, merged with Russneft in December 2014.
Investigations
In November 2006, the Investigative Committee of the Russian Federation initiated a criminal proceeding related to operations of three RussNeft subsidiaries: Nafta-Ulyanovsk, Ulyanovskneft and Aganneftegazgeologiya. According to the investigation, in 2003-2004 Aganneftegazgeologiya exceeded its permitted output in developing the oilfields at Zapadno-Mogutlorskoye and Roslavlskoye and received ₽5 billion in excess profit. Similar violations were discovered by the General Prosecutor's Office during investigations of Nafta-Ulyanovsk and Ulyanovskneft; managers of the companies exceeded quotas allowed by the subsoil licenses. The income of Nafta-Ulyanovsk from the sale of illegally-produced oil amounted to about ₽700 million, and the income of Ulyanovskneft reached ₽2 billion.
[Глава «Русснефти» обвинен в незаконном предпринимательстве](_blank)
РБК
The RBC Group, or RosBiznesConsulting (russian: Группа компаний «РБК» РБК, РосБизнесКонсалтинг), is a Russian media group headquartered in Moscow. It was established in 1993.
The company holds an infor ...
, 14 мая 2007]
In late January 2007, authorities began investigating the company for tax evasion. On February 12, 2007, Gutseriev was charged with violating Part 2, Article 199 of the Criminal Code of the Russian Federation. The Federal Tax Service submitted eight claims to Russneft's former and current shareholders in April 2007. The tax authorities believed that stock in the company was sold at a low price to evade taxes. In June 2007, Tax Inspection No. 1 made a claim on RusNeft for ₽17.1 billion (₽14.5 billion in taxes and surcharges and ₽2.6 billion in penalties).
Gutseriev reported in late July that he was being pressured by the Russian government and would sell the company to Bazoviy Element, a holding company owned by
Kremlin
The Kremlin ( rus, Московский Кремль, r=Moskovskiy Kreml', p=ˈmɐˈskofskʲɪj krʲemlʲ, t=Moscow Kremlin) is a fortified complex in the center of Moscow founded by the Rurik dynasty, Rurik dynasty. It is the best known of th ...
loyalist
Oleg Deripaska
Oleg Vladimirovich Deripaska (russian: Олег Владимирович Дерипаска; born 2 January 1968) is a Russian billionaire and an industrialist. Deripaska enriched himself on previously state-owned assets that were privatized in ...
. He resigned as president, saying that he would end his business activity and go into research. On July 31, the Lefortovo Court seized all RussNeft shares.
On November 9, 2007, the Arbitration Court of Appeal upheld the order of the Arbitration Court of Moscow fining Russneft about ₽17 billion for the second half of 2004 and all of 2005. After the decision, tax authorities would begin charging arrears.
In January 2010, Gutseriev regained control of the oil company. By mid-April, all charges against him were dropped.
On May 4, 2017, Gutseriev was charged with illegal business activity in violation of paragraphs a and b of part 2, Article 171 of the Criminal Code of the Russian Federation. His travel was restricted before trial.
Political considerations also influenced the investigations. A source close to the government of
Ingushetia
Ingushetia (; russian: Ингуше́тия; inh, ГӀалгӏайче, Ghalghayče), officially the Republic of Ingushetia,; inh, Гӏалгӏай Мохк, Ghalghay Moxk is a republic of Russia located in the North Caucasus of Eastern Europe. ...
said that Gutseriev angered security services by preventing the development of Russneft in Ingushetia, but ''
Kommersant
''Kommersant'' (russian: Коммерсантъ, , ''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 ...
'' downplayed that. According to Russneft, Gutseriev clashed with a high-ranking Kremlin official. It was less related to the oil business, but more to the political initiatives of M.Gutseriev. ''
RBK Daily
''RBK Daily'' (russian: РБК daily) is a general business newspaper published in Moscow, Russia
Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest co ...
'' reported that Russneft had purchased assets from
YUKOS
OJSC "Yukos Oil Company" (russian: ОАО Нефтяна́я Компа́ния Ю́КОС, links=no, ) was an oil and gas company based in Moscow, Russia. Yukos was acquired from the Russian government by Russian oligarch Mikhail Khodorkovs ...
which were not approved by the Kremlin, but refused to purchase Transpetrol (a Slovak pipeline company of strategic significance to Russia).
A number of experts said that one reason for pressure on Gutseriev was his refusal to sell Russneft to a state companiy for US$1 billion in 2006. Another reason was connected to his financing of opposition to Ingush president
Murat Zyazikov
Murat Magometovich Zyazikov (russian: Мура́т Магоме́тович Зя́зиков) (born September 10, 1957) is a Russian politician who was the second president of the southern Russian republic of Ingushetia. He was born in what is ...
.
Ownership and management
Gutseriev and his partners were the founders and initial owners of Russneft. Control of the company was assumed in March 2009 by Bazoviy Element, the holding company owned by Oleg Deripaska.
Glencore
Glencore plc is a Swiss multinational commodity trading and mining company with headquarters in Baar, Switzerland. Glencore's oil and gas head office is in London and its registered office is in Saint Helier, Jersey. The current company was c ...
also had an option to purchase a stake in Russneft.
[''Елена Мазнева.'' Добавить $2 млрд](_blank)
// Ведомости, No. 59 (2329), 3 апреля 2009
In January 2010, Gutseriev regained control of the company. In April of that year, it was announced that he would selling 49 percent of Russneft to AFK
Sistema
AFK Sistema PAO is a large Russian conglomerate company, founded by Vladimir Yevtushenkov, who was chairman of the corporation's board of directors until 2022. In April, Yevtushenkov's shareholding in Sistema has decreased to 49.2%, and he also ...
; two percent of the company's shares were sold to
Sberbank
PJSC Sberbank (russian: Сбербанк, initially a contraction of russian: сберегательный банк, translit=sberegatelnyy bank, lit=savings bank, link=no) is a Russian majority state-owned banking and financial services compan ...
. In July 2013, AFK Sistema sold 25 percednt of its shares to Bradinor Holdings Limited; twenty-four percent were purchased by Cromeld Management Limited. Both companies served Gutseriev family members.
[''Ирина Резник, Екатерина Дербилова''. Гуцериев сделал дело](_blank)
// Ведомости, No. 74 (2592), 26 апреля 2010
Gutseriev owned 60 percent of Russneft's
common stock
Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Com ...
, and Glencore owned 25 percent. Gutseriev has been chairman of the board since February 2015.
He sold his stake (37.15 percent) in August 2021 to Vemonar Holdings (a Cypriot company owned by his brother, Sait-Salam Gutseriev). According to Russneft, the deal was made on June 10, before June 21 EU sanctions and August UK sanctions on Gutseriev (due to his connections with Belarus president
Alexander Lukashenko
Alexander Grigoryevich Lukashenko (as transliterated from Russian language, Russian; also transliterated from Belarusian language, Belarusian as Alyaksand(a)r Ryhoravich Lukashenka;, ; rus, Александр Григорьевич Лука ...
) were imposed.
2016 IPO
On November 25, 2016, Belyrian Holdings Limited (owned by Gutseriev) began trading 20 percent of the common stock on the
Moscow Exchange
The Moscow Exchange (MOEX; rus, Московская биржа, r=Moskovskaya birzha, p=mɐˈskofskəjə ˈbʲirʐə, a=) is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, ...
(15 percent of the
authorised capital
The authorised capital of a company sometimes referred to as the authorised share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorised by its con ...
) at ₽550 per share. Russneft, valued at ₽161.8 billion, raised ₽32.4 billion in the
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 investment ...
.
Production
West Siberia group:
* ОАО Mokhtikneft
* ОАО Varioganneft
* ОАО MPK Aganneftegazgeologiya
* ООО Beliye Nochi
* ЗАО Chernogorskoye
* ОАО NAK AKI-OTYR
* ST Golioil
Volga group:
* ОАО Saratovneftegaz
* ОАО Ulyanovskneft
Central Siberia group:
* ООО Tomskaya Neft
RussNeft is developing over 120 oil and gas fields, and its oil reserves were estimated at 600 billion tons.
Performance
Russneft's 2016 IPO, intended to repay long-term loans, netted ₽14 billion. The company's gross 2018 revenue was ₽176.365 billion (up 43 percent from 2017); its net was ₽11.752 billion RUB (up 8.7 percent from 2017), and its
EBITDA
A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, pronounced , , or ) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, stat ...
was ₽18.276 billion (up 39.1 percent from 2017). In 2019, Russneft produced 7.2 million tons of oil per year and had reserves equivalent to 600.8 million tons. The company had over 15,500 employees.
Projects
Khanty-Mansi Autonomous Okrug
Russneft's engineering facilities enabled commercial field operations to begin.
In 2019, the Verkhne-Shapshinsky
formation
Formation may refer to:
Linguistics
* Back-formation, the process of creating a new lexeme by removing or affixes
* Word formation, the creation of a new word by adding affixes
Mathematics and science
* Cave formation or speleothem, a secondar ...
yielded 1.6 million tons of oil, and the Tagrinskoye field yielded 10 million tons.
Gas projects
Russneft focuses on projects to increase the efficient use of
associated petroleum gas
Associated petroleum gas (APG), or associated gas, is a form of natural gas which is found with deposits of petroleum, either dissolved in the oil or as a free "gas cap" above the oil in the reservoir. The gas can be utilized in a number of ways a ...
(APG), natural-gas production and gas processing.
[Investmap Russia//http://invest-map.ru/news/russneft_uverenno_voshla_s_dolgozhdannym_pokazatelem_95_procentnym_urovnem_utilizacii_poputnogo_neftjanogo_gaza/2015-03-15-1220] Gas utilization in 2019 was 95 percent, meeting the government requirement to reduce environmental impacts.
International projects
In autumn 2006, Russneft signed a cooperation agreement with the Azerbaijani company
SOCAR
The State Oil Company of Azerbaijan Republic ( az, Azərbaycan Respublikası Dövlət Neft Şirkəti), largely known as SOCAR is fully state-owned national oil and gas company headquartered in Baku, Azerbaijan. The company produces oil and na ...
on the Zyh-Govsani oil project in the southern
Absheron Peninsula
The Absheron Peninsula ( az, Abşeron yarımadası) is a peninsula in Azerbaijan. It is the location of Baku, the biggest and the most populous city of the country, and also the Baku metropolitan area, with its satellite cities Sumqayit and Khyrd ...
. In May 2007, the company obtained 37.5 percent of the
Binagady project rehabilitating old oilfields near Baku. Production in Azerbaijan is 500,000 tons from fields such as Binagady, Kirmaki, and Chakhnaglyar.
''Александр Тутушкин.'' Колодцы «Русснефти»
// Ведомости, No. 102 (1876), 6 июня 2007
See also
*List of oil exploration and production companies
The following is a list of notable companies in the petroleum industry that are engaged in petroleum exploration and production. The list is in alphabetical order by continent and then by country. This list does not include companies only involved ...
References
{{authority control
2002 establishments in Russia
Companies based in Moscow
Companies listed on the Moscow Exchange
Energy companies established in 2002
Oil companies of Russia
Russian brands