Support The Moscow Times!

Russian Oil Giant Rosneft Sues Oligarch's Rival Conglomerate

CEO of state-controlled Russian oil company Rosneft Igor Sechin attends the ASEAN - Russia summit in the Black Sea resort of Sochi, Russia Sergei Karpukhin/Pool Photo via AP

Russian state-owned oil giant Rosneft has filed suit against oligarch Vladimir Yevtushenkov's Sistema conglomerate, sending Sistema's stock prices into free fall.

Rosneft is seeking 106.6 billion rubles ($1.87 billion) from Sistema in a case connected to Bashneft, a regional oil company and Rosneft subsidiary that previously belonged to the conglomerate.

Details of the case are scarce, but Rosneft Spokesman Mikahil Leontyev told the Interfax news agency that the suit centers on assets stripped from Bashneft. These actions led to the “devaluation” of Bashneft, he told the RBC agency.

As news of the suit went public, Sistema's shares fell by over 25 percent on the Moscow Exchange.

Until 2014, Sistema owned a majority share in Bashneft. However, that year, the Bashkortostan-based oil company was “re-nationalized” after a court ruled Yevtushenkov's company had improperly privatized it.

Then, in October 2016, Rosneft purchased a 50.08 percent share in Bashneft, a move that secured energy behemoth's dominance in the Russian oil industry.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more