is responsible for 40% of Russia’s oil output, but it is much more than just another oil firm. A large chunk of its shares are owned by the Russian state. Its boss, Igor Sechin, is one of Vladimir Putin’s closest henchmen. A former spook, like the Russian president, he has been at the big man’s side since the 1990s. In 2004-06 Rosneft gobbled up the remains of Yukos, Russia’s largest private oil firm, which was dismembered after its boss challenged Mr Putin.
For years the Kremlin has propped up Venezuela’s dictatorship, first under Hugo Chávez, then under his protégé, Nicolás Maduro. Russia has supplied loans, weapons and, lately, mercenaries to keep the regime in power, largely to annoy the United States. America, like many democracies, does not recognise the election-stealing Mr Maduro as Venezuela’s president, and has slapped severe sanctions on his country.
Rosneft’s role in all this has been to practise bare-knuckle petropolitics. It has traded Venezuelan oil to help Mr Maduro get around American sanctions. Rosneft lent his government $6.5bn in 2014-18, to be repaid in oil. At the end of last year it was still owed at least $800m, though the figures are murky.
Thanks to a low oil price, sanctions and the Maduro regime’s spectacular corruption and ineptitude, Venezuela is in no position to repay all its debts. But this is not too much of a problem for Rosneft, since it can dump its Venezuelan assets on to Russian taxpayers. They will no doubt be delighted to hear that they have paid for this with 9.6% of Rosneft’s own shares , thus reducing their stake to just over 40%. The deal gives Mr Sechin ever tighter control of the firm.
These shenanigans come at a turbulent time in the oil markets. The price of crude has fallen by half in the past month, as covid-19 has crushed demand and Saudi Arabia has opened its taps to punish Russia for refusing to extend andeal to curb production. The Kremlin would like cheap oil to drive American shale producers, whose costs are higher, out of business. This is a risky game. Russia has alienated the Saudis, who might draw closer to America as a result.
perestroika 1990 to one national test russia 🇷🇺 plans is food barter revolution Progress a weekend rush to offshore energy arithmetic.....
Vladimir Putin : 'I impose taxation of financial transactions to finance new productive & organizational models : public services-social ecology-profit-sharing & participation of EMPLOYEES-CUSTOMERS-USERS in the decisions & management of the company. Direct & economic democracy'
apparently his ppl don’t think he’s a dictator ? The West has been manipulating the press to claim all the leaders they don’t like as dictators .... then use military force to put down the weak ones
“dictatorship” lmao meanwhile the UK and US are ruled by far right fascist regimes
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