The story
Founded by Government of Russia in 1993, in Moscow.1
Origins
Rosneft has played a major role in the history of Russia's oil industry. The first use of the name Rosneft dates back to the late 19th century, when exploration of oil fields in Sakhalin began in 1889. Most of Rosneft's current assets were acquired during the Soviet era.
1990s
Rosneft was established in 1993 as a unitary enterprise with assets previously held by Rosneftegaz, the successor to the Soviet Union's Ministry of Oil Industry. During the early 1990s, almost all Russian oil companies and refineries were extracted from Rosneft to form ten integrated companies. Later, their number was halved due to acquisitions. On 29 September 1995, an Order of the Government of Russia No. 971 transformed Rosneft into an open joint stock company.
In March 1996, Rosneft founded the Russian Regional Development Bank. Rosneft struggled financially and operationally during the 1998 Russian financial crisis with decreased production due to poor assets and lower retail sales with an underused refining capacity. In July 1998, the Russian government tried to sell Rosneft, but it failed.
In October 1998, the Russian government appointed Sergey Bogdanchikov as president. The company owned two obsolete refineries and several low-productive and poorly managed oil-producing assets. In the late 1990s, plans for Rosneft's privatization in Russia were made, but due to competition with equally influential pretenders, they were not carried out.
2000s
From 2002 to 2004, the company's primary objectives were to strengthen control over its assets, reduce its debt burden, and obtain licenses in Eastern Siberia. The determining factor in enhancing the role of Rosneft in the Russian oil industry has been the support of the country's top leadership. The company, during this time, managed to restore its status after its rough start in the 1990s with the acquisition of Krasnodar Oil and Gas Company in 2002 and Northern Oil Company in early 2003. In addition, in 2002, the company received a license for the development of the Sakhalin-IV and Sakhalin-V project, and in 2003 a license for the development of the Sakhalin-III project.
In 2005, Rosneft acquired a 25.94% stake in the company Verkhnechonskneftegaz and became the leading oil company of Russia in terms of production. In 2007, the company entered the annual list of the one hundred most respected firms and companies in the world, as compiled by the weekly Barron's, in 99th place. By the same year, Rosneft produced 100 million barrels of oil, 20% of Russia's output at the time. In March 2007, Rosneft had announced it hoped to increase production from 80 million tonnes to 103 million tonnes from 2006 to the end of 2007, extract 140 million tonnes of oil by 2012, and become a global top three energy company. When the Great Recession struck Russia in late 2008, Rosneft was able to endure the economic pains by improving and strengthening business lines, management, and transparency, and as a result, became a leading oil company domestically and internationally.
In February 2009, several agreements were negotiated between Russia and China that provided a 20-year contract for an annual supply of 15 million tons of oil between the Chinese National Petroleum Corporation (CNPC) and Rosneft, cooperation between CNPC and Transneft to construct and operate a branch of the Eastern Siberia–Pacific Ocean (ESPO) oil pipeline to China, and the provision of loans for US$25 billion—US$15 billion from Rosneft and US$10 billion from Transneft—by the China Development Bank on the security of supplies.
Acquisition of assets of Yukos
Starting in 2004, the Russian government organized a series of auctions to sell the assets of Yukos Oil Company, of which Rosneft won the majority. On 22 December 2004, Rosneft purchased Baikal Finance Group, which bought Yuganskneftegaz (Yugansk), a main asset of Yukos, three days earlier at a state-run auction for US$9.35 billion to satisfy tax debts. According to some estimates, this operation was directed by Russian authorities to nationalize Russia's oil and gas industry. In response to the deal, Andrei Illarionov, then a senior Putin economic advisor, denounced it as "fraud of the year".
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In 2005, Mikhail Khodorkovsky (former chairman of Menatep) and Platon Lebedev (business partner of Khodorkovsky) were sentenced to nine years in prison for fraud and tax evasion. In February 2007, they were charged again and accused of stealing $25 billion worth of oil from Yukos subsidiaries. They were convicted, but in 2013 Putin pardoned Khodorkovsky, and in 2014, the Russian supreme court announced that Lebedev should also be freed early.
The purchase of Yugansk in 2005 significantly increased the number of assets and production for Rosneft. Subsequently, Rosneft filed a lawsuit against Yukos in connection with the use of understated transfer prices for the purchase of oil from Yuganskneftegaz before its breakup. At the same time, Rosneft itself also purchased oil and gas from its subsidiary, Yuganskneftegaz, at transfer prices.
In May 2007, Rosneft won several auctions for the sale of Yukos' assets, including five refineries and the oil companies Tomsk Oil Company and Samara Oil and Gas Company, thereby becoming the largest oil company in Russia. According to experts at the Russian newspaper Vedomosti, the assets of Yukos, purchased by Rosneft at an auction organized by the state, were acquired at a discount of 43.4% of the market price of this property. In 2007, the former assets of Yukos accounted for 72.6% of oil and gas condensate production and 74.2% of Rosneft's primary refining capacity. In June, Rosneft paid $731 million for the transportation assets of Yukos, which had declared bankrupt in August 2006 after three years of litigation over tax arrears. In August, Bogdanchikov said that although the Yukos acquisitions had increased Rosnefts debt to $US 26 billion, he planned to reduce debt to 30% of total assets by 2010 by tripling refining capacity and expand into China.
Initial public offering of 2006
In July 2006, Rosneft placed 15% of its shares traded with a total value of US$10.7 billion in an initial public offering (IPO) at the London Stock Exchange, the Russian Trading System, and the Moscow Interbank Currency Exchange. Part of the shares were distributed among the Russian population through banks such as Sberbank and Gazprombank.
The Federal Service for Financial Markets authorized the placement and circulation outside the country of a 22.5% stake in Rosneft. Rosneft announced a placement value of US$5.85–7.85 per share and global depository receipt (GDR), based on the company's capitalization after consolidation of US$60–80 billion. It planned to place shares for at least US$8.5 billion to repay loans to Western banks, including interest and taxes.
On 14 July, the official results of the placement value were announced. Shares were priced at US$7.55, almost at the upper end of the price band, resulting in Rosneft's capitalization—taking into account the upcoming consolidation of its subsidiaries—at a value of US$79.8 billion, making Rosneft surpass Lukoil as the largest oil company in Russia. Investors purchased 1.38 billion shares for US$10.4 billion: 21% of the shares were acquired by strategic investors, 36% by international investors from North America, Europe, and Asia, 39% by Russian investors, and 4% by Russian retail investors. 49.4% of the total IPO volume was accounted for by four investors, including BP for US$1 billion, Petronas for US$1.5 billion, and the CNPC for US$0.5 billion. Individuals submitted applications for the purchase of 99,431,775 shares of the oil company. As a result, most of the new shareholders were individuals, partly because this IPO was given the unofficial name of "people's."
Rosneft's IPO became the largest in Russian history and the fifth-largest in the world at the time, in terms of the amount of money raised. The announced amount could increase by another US$400 million if the global placement coordinators realize the option of buying another 53 million GDRs of Rosneft at the price of placement within 30 days.
On Abkhazia
On 26 May 2009, a five-year cooperation agreement was negotiated between Rosneft and the Abkhazia's Ministry of Economy. The parties stated their intention to develop mutually beneficial cooperation in areas as geological prospecting, development of oil and gas fields, production of hydrocarbons, and sale of oil, natural gas, and oil products. Rosneft undertook exploration on the shelf in the Ochamchire area, discovering preliminary reserves estimated at 200 million to 500 million tons of oil equivalent. In addition to drilling and creating its own sales network, Rosneft also planned the construction of mini-refineries in Abkhazia.
According to Rosneft, the company provides more than half of the retail sales of oil products in Abkhazia. In 2014, Rosneft exported 47 thousand tons of oil products to Abkhazia. Since 2015, Rosneft has been supplying aviation fuel for Sukhumi Babushara Airport. As part of the project to develop the Gudauta area on the Black Sea shelf, Rosneft conducted a comprehensive range of geophysical and geochemical research, carried out 2D and 3D seismic surveys, and initiated preparations for exploratory drilling. In June 2014, Rosneft extended the shelf study period to five years.
In July 2015, however, the new President of Abkhazia, Raul Khajimba, who replaced Alexander Ankvab after his resignation, spoke out against the exploration and production of oil on the offshore shelf of Abkhazia and asked the People's Assembly to consider the possibility of establishing a "commission for the comprehensive study of issues related to the conclusion of contracts for exploration and production hydrocarbons by the previous Abkhaz leadership." A group of deputies of the People's Assembly drafted a bill banning the development of hydrocarbons in Abkhazia. Supporters of the bill demanded the prohibition of the development of the offshore shelf in Abkhazia for 30 years.
2010s
In September 2010, Eduard Khudainatov replaced Sergei Bogdanchikov as CEO of the company. On 15 October 2010, Russian President Dmitry Medvedev signed an agreement with President of Venezuela Hugo Chávez for the PDVSA to sell 50% of the shares of German company Ruhr Oel to Rosneft, giving Rosneft oil refining assets in Germany. Since 23 May 2012, former Deputy Prime Minister Igor Sechin became the company's CEO, succeeding Khudaynatov, who received the post of vice-president. In the summer of 2012, Rosneft purchased a fuel oil terminal from the United Shipbuilding Corporation (USC) located on the territory of the Murmansk Ship Repair Plant No. 35. The transaction value is estimated at US$28 million. According to Kommersant, the Murmansk terminal can be used as a platform for Rosneft's activities in the Arctic.
In October 2016, Rosneft bought a 49% stake in Essar Oil of India, along with Russian investment fund United Capital, in a deal worth $13 billion. On 7 December 2016, Rosneft signed a deal to sell 19.5% of the outstanding shares, or roughly US$11 billion, to the Anglo-Swiss multinational commodity trader Glencore and the Qatar Investment Authority. Officially, the stake was split 50/50 between Glencore and Qatar, but Glencore contributed only €300 million and claims only a 0.54% stake. The ownership structure includes a Cayman Islands company, QHG Cayman Limited, whose ownership can not be traced. After the transaction, Rosneft's holding company Rosneftegaz retained 50% + 1 share of the company.
On 2 October 2017, the PLA-linked CEFC China Energy bought a $9 billion stake in Rosneft. On 26 September 2017, the Russian government controversially approved the former German chancellor Gerhard Schröder as chairman of Rosneft. In May 2018, it was announced that the Qatar-Glencore consortium is cancelling the plan to sell a $9.1 billion (14%) stake of Rosneft to CEFC China Energy. With the dissolution of the consortium, the Qatar Investment Authority purchased the shares instead, thereby solidifying its position as one of the biggest shareholders (19%) of Rosneft. In the 2010s, the extensive contact between Rosneft and ExxonMobil were further deepened, with Igor Sechin and Rex Tillerson getting to know each other personally.
Arctic shelf deals with BP and ExxonMobil
On 15 January 2011, Rosneft and BP announced a deal to develop the East-Prinovozemelsky field on the Russian arctic shelf between the Yamal Peninsula and Novaya Zemlya island. As part of the deal Rosneft was to receive 5% of BP's shares, worth approximately $7.8 billion, as of January 2011 and BP would get approximately 9.5% of Rosneft's shares in exchange. According to the deal, the two companies would create an Arctic technology centre in Russia to develop technologies and engineering practices for safe arctic hydrocarbons extraction. AAR, which represents four billionaires of Russian origin and is BP's Russian partner in the TNK-BP joint venture, blocked the BP–Rosneft deal in international courts, arguing it breached earlier contracts between BP and AAR.
The TNK-BP partners had previously signed a shareholding agreement which stipulated that their Russian joint venture would be the primary corporate vehicle for BP's oil and gas operations in Russia. On 30 August 2011, Rosneft announced that instead of BP, the partner for EPNZ-1, EPNZ-2 and EPNZ-3 in the Kara Sea will be ExxonMobil. In exchange, subject to approval by U.S. regulators, Rosneft was granted a share in oil production in Russian fields, as well as participation in U.S. fields in Texas and the Gulf of Mexico.
Black Sea shelf deal with ExxonMobil
On 27 January 2011, Rosneft and the American company ExxonMobil signed a deal to establish a joint venture for prospecting and extracting oil from the Tuapse field deepwater area on the Black Sea shelf, near the coast of the Krasnodar Krai. The value of the deal is unknown, but ExxonMobil is expected to invest $1 billion in the project. The venture will be shared 50–50 between the companies during the prospecting phase, and two-thirds to one-third in Rosneft's favour during the extraction phase. The Tuapse Trough is estimated to contain 7.2 billion barrels of oil equivalent. The first well could be drilled in 2012. The deal also contains options for additional cooperation, such as extended exploration and production, deliveries to Rosneft's oil refinery in Tuapse, development of transport infrastructure and research on offshore oil production technologies. According to analysts, offshore areas are central to Rosneft's expansionist plans, and the company is looking for foreign cooperation to bring in new technology and share risks.
In April 2017, the Trump administration denied ExxonMobil permission to continue a deal with Rosneft to drill for oil in Russia.
TNK-BP acquisition
On 22 October 2012, it was announced that Rosneft will take over TNK-BP International, a parent company of TNK-BP Holding, which is the third largest oil company in Russia. BP will receive in exchange of its stake $12.3 billion of cash and 18.5% of Rosneft's share, while ARR received $28 billion in cash. According to Rosneft's CEO Igor Sechin, no discussion was held on a buyout of minority shareholders in TNK-BP Holding. The deal was completed on 20 March 2013.
2020s
On 27 February 2022, BP announced that it would divest its 19.75% stake in Rosneft in response to the Russian invasion of Ukraine that took place in February 2022. In 2022, Trafigura wound down its relationship with Rosneft, Rosneft asked 2Rivers to take Trafigura's place. The week beginning 19 April 2022, Rosneft attempted to sell millions of barrels of Urals, one of Russia's three main export-grade crude oils. The offer failed to attract any customers. Following the 2022 Russian invasion of Ukraine, more than half of Rosneft's 11-member board had quit, forcing the company into a major reshuffle at its annual general meeting on 30 June 2022. Taieb Belmahdi, a former executive at Qatar's state-owned QE, has been elected chairman of the board to replace ex-German chancellor Gerhard Schröder, who stepped down in May.
In November 2023 a Rosneft subsidiary Sakhalinmorneftegaz-Shelf was given the job of managing Sakhalin-I with an 11.5% interest in the project. In January 2024, Ukrainian retaliatory drone strikes hit at least four oil and gas terminals across Russia, including Rosneft's Tuapse oil terminal on the Black Sea coast. On 13 March 2024, Ukrainian drones set fire to Rosneft's oil refinery in Ryazan, the seventh largest in Russia, causing injuries according to the regional governor. The refinery is responsible for 8% of Russian aviation fuel, 6.4% of gasoline, 4.1% of diesel, and 7.7% of fuel oil. Another drone was shot down over the Kirishi refinery, Russia's second largest, without causing damage or injuries.
On 15 October 2025, the UK placed sanctions on Rosneft, Lukoil and 88 other entities which were considered to be supporting Russia's war. In October 2025, oil and gas revenues in Russia decreased 27% compared to the previous year and Rosneft was the most affected exporter. In December 2025, Rosneft had a 70% year-on-year drop in net profit, the highest ever recorded in its history. Rosneft reported an 18.8% lower annual revenue in 2025 due to lower prices caused by sanctions against Russia and the sustained appreciation of the ruble.
From Wikipedia’s article on Rosneft, shared under CC BY-SA 4.0.5