Kremlin Remarks on Decree Authorizing Sale of Rosneft Shares

Vladimir Putin has recently given the go-ahead for transactions involving shares of the state-owned oil producer. Read Full Article at RT.com

Kremlin Remarks on Decree Authorizing Sale of Rosneft Shares
President Vladimir Putin has recently approved transactions involving the shares of state-owned oil producer Rosneft, a decision linked to corporate matters that remain undisclosed due to the current economic and geopolitical landscape, according to Kremlin spokesperson Dmitry Peskov, who addressed reporters on Wednesday.

Peskov's comments were made in response to inquiries regarding whether the decree was connected to efforts to sell BP's stake in Rosneft. The British oil company, despite announcing its intentions to divest in 2022, still retains a $14 billion equity interest in the Russian state-controlled firm.

Last week, Putin enacted a decree that lifted a previous ban from 2022 on the sale of Rosneft shares. This new resolution authorizes entities to “directly or indirectly establish, modify, terminate, or encumber ownership rights” concerning shares in Rosneft and its subsidiaries.

Analysts have suggested that this move could potentially make it easier for BP to offload its 19.75% stake in Rosneft. The company has expressed its desire to exit its Russian investments since February 2022, yet it has not completed the sale of its interests in Rosneft or its three joint ventures with the company.

“These are corporate development matters that cannot be conducted openly, especially given the challenging and unfriendly global economic environment,” Peskov remarked when questioned about BP’s role.

In August 2022, Putin enacted a decree that prohibited transactions involving shares of Russia's strategic companies, preventing entities from “unfriendly states” from divesting their stakes in Russian financial and energy assets without government consent. This measure was implemented to safeguard the Russian economy against external influences amid Western sanctions.

Rosneft's current shareholders comprise Qatar's sovereign wealth fund, which owns an 18.46% stake, the Russian state entity Rosneftegaz with a 40.4% stake, and Rosneft subsidiaries RN-NeftCapitalInvest and RN-Capital, holding 9.6% and 0.76%, respectively.

The latest decree arrives as Rosneft is in negotiations to sell its German assets, which include the Schwedt refinery—the fourth largest in Germany, supplying 90% of Berlin's fuel. In 2022, the German government took control of Rosneft's assets in Germany and placed them under trusteeship.

Camille Lefevre for TROIB News