Russia plans to merge the largest oil companies - ISW
Kyiv • UNN
Russian authorities are negotiating a merger between Rosneft, Gazprom Neft and Lukoil. The goal is to strengthen its position in the energy market and obtain more favorable deals with China and India.
Russian authorities are considering a merger of the three largest oil companies - Rosneft, Gazprom Neft and Lukoil. This is likely to help Russia reach more favorable energy deals with non-Western countries. This is stated in a report by the Institute for the Study of War (ISW), UNN reports.
Details
It is noted that The Wall Street Journal recently cited sources as saying that Russian officials and executives are negotiating a possible merger of state-owned Rosneft, Gazprom Neft, and independent Lukoil. This would create the second largest oil company in the world.
The publication recalled that the "main player" in the current negotiations is the head of Rosneft and a close associate of Russian dictator Vladimir Putin, Igor Sechin. The publication also notes that the merger may be aimed at obtaining higher prices for Russian oil from India or the People's Republic of China (PRC).
At the same time, WSJ sources said that the deal is still subject to change. It is unclear whether Sechin will actually head the merged company, and representatives of the Kremlin, Gazprom Neft, Lukoil, and Rosneft have denied that negotiations have taken place.
ISW reminded that Gazprom, as the parent company of Gazprom Neft, has lost significant revenues from falling energy sales since the beginning of Russia's full-scale invasion in 2022.
Gazprom CEO Alexey Miller failed to reach an agreement with China in early 2024 due to disagreements over the proposed Power of Siberia-2 gas pipeline.
In his address to the Valdai Club on November 7, Putin emphasized that Russia is ready to sell oil, gas and nuclear energy to China to compensate for the energy supplies that Beijing has lost due to Western sanctions.
The Kremlin may be trying to strengthen its influence on the global energy market in order to achieve more favorable energy deals, especially with China. This is due to falling revenues from international energy exports and increased federal spending on national security and defense,
