The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Russia: State-owned majors scrap over oil assets

Two landmark bank loans will reinforce the dominance in Russia's oil and gas sector of two of the largest state-controlled companies – fuelling rivalry between them.

State holding company Rosneftegaz is talking to banks about a $7.3 billion loan to finance its purchase of 10.7% of Gazprom. The loan is intended as a bridge to a Rosneft IPO. State-owned Rosneft aims to become Russia's biggest oil producer after buying assets that once belonged to now-bankrupt Yukos.

The second loan could finance Gazprom's purchase of a majority share of Sibneft, oligarch Roman Abramovich's oil company.

Complications

Intra-Kremlin politicking complicates both transactions, with those around Igor Sechin, deputy head of the presidential administration and Rosneft chairman, at odds with those around Dmitry Medvedev, presidential administration chief and Gazprom chairman.

Stephen O'Sullivan, oil and gas analyst at Moscow's United Financial Group, says this competition between two state-owned companies is "perhaps unique to Russia".

Gazprom bought 3% of Sibneft shares in August – a possible attempt to stop Rosneft getting a blocking minority stake in it.

Another 5% of Sibneft shares are in free float, Abramovich's vehicle, Millhouse Capital, owns 72%, while 20%, acquired by Yukos during its aborted merger with Sibneft in 2003, are frozen.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree