Rosneft expansion fuels foreign policy decisions

moscow — Whether investing in China, Venezuela or Iraq, Russian oil giant Rosneft closely follows Moscow’s geopolitical interests as the Kremlin-controlled company seeks to expand its nation’s influence, at times in unstable countries.

Headed by Vladimir Putin’s ally Igor Sechin, Rosneft grew massively by acquiring the assets of Yukos oil company, whose founder Mikhail Khodorkovsky spent a decade in jail on charges widely seen as punishment for his political ambitions.

Rosneft has since grown into a global oil giant with an output of over 5 million barrels per day and a net worth of almost $50 billion.

All the while, Rosneft has followed Russia’s political course, distancing itself from the West and turning instead towards large developing countries.

“Sechin is not just an economic leader,” said Nikolai Petrov, a professor at Moscow’s Higher School of Economics.

Sechin wants to “demonstrate that Rosneft is important and nec-

Around the world it is fairly difficult to find very interesting assets at an affordable price Alexei Gromov, Director, Institute for Energy and Finance, Rosneft

essary not only as one of the pillars of Russia’s economy but also as a powerful tool for foreign policy,” Petrov said.

Although it floated on the London Stock Exchange in 2006 and has in the past partnered with Western giants such as US ExxonMobil and Norwegian Statoil, Rosneft has more recently attracted attention by striking a deal to sell oil to China, purchasing Indian refiner Essar Oil and attracting investment from Qatar.

Hit by the Western sanctions imposed on Moscow in 2014 for Russia’s role in the Ukraine crisis, Rosneft does not hesitate to do business with turbulent countries where other foreign investors are wary. — AFP