Rosneft Delivers on Putin’s Ambitions, at Some Cost to Investors

The state-run company is a clear symbol of the Kremlin’s comeback. It’s become the world’s largest listed oil producer by swallowing up a clutch of domestic rivals. With deals this year from India to Venezuela and Egypt, Rosneft is on the way to being a global player whose expansion often aligns with Russian foreign policy priorities. Yet the debt accrued along the way, plus direct sanctions against Chief Executive Officer Igor Sechin because of his close ties to Putin, mean Rosneft is unloved by investors despite the improving fortunes of its international rivals. “Rosneft has clearly emerged as Russia’s national champion,” said Edward Chow, a senior fellow at the Center for Strategic and International Studies based in Washington. “Whether such transactions are beneficial financially to Rosneft and its minority shareholders is yet to be proven, but its appetite for foreign acquisitions appears to be growing.”More…