• 7 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 8 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 9 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 9 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 10 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 11 hours VW Fails To Secure Critical Commodity For EVs
  • 12 hours Enbridge Pipeline Expansion Finally Approved
  • 13 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 13 hours OPEC Oil Deal Compliance Falls To 86%
  • 1 day U.S. Oil Production To Increase in November As Rig Count Falls
  • 1 day Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 1 day Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 1 day EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
Tesla Execs Bail As Cash Flow Hits Record Lows

Tesla Execs Bail As Cash Flow Hits Record Lows

Amid a rough second quarter…

Footloose Iraq Cannibalizes Saudi Market Share

Footloose Iraq Cannibalizes Saudi Market Share

OPEC’s de-facto leader Saudi Arabia…

Rosneft Scoffs At U.S Sanctions, Says Western Investors Could Suffer

Rosneft, Russia’s government-owned oil giant, says news U.S. sanctions imposed because of Moscow’s suspected role in the continuing fighting in Ukraine are not only “illegitimate,” but they also won’t work as Washington intended.

On July 16, the Obama administration imposed its strictest sanctions yet on Russia, including denying Rosneft access to American debt or equity markets for some new financing. Still, the penalties didn’t include prohibitions on U.S. companies or individuals from continuing to do business with Rosneft or with Novatek and Gazprombank, other Russian companies targeted by the sanctions.

In a statement on July 18, Rosneft shrugged off the new sanctions, saying they won’t keep it from pursuing its current initiatives and paying dividends.

In announcing the sanctions on July 16, U.S. President Barack Obama said the United States and its allies have “repeatedly made it clear that Russia must halt the flow of weapons and fighters across the border into Ukraine; that Russia must urge separatists to release their hostages and support a cease-fire; that Russia needs to pursue internationally mediated talks and agree to meaningful monitors on the border.”

Rosneft scoffed at the new sanctions, saying the U.S. “has no influence on either political or economic processes ongoing in Ukraine. For this reason, the above-mentioned sanctions are illegitimate and groundless.”

Despite Rosneft’s claim of robust financial health, the company’s shared fell by 4.3 percent in Moscow trading on July 17 and a further 1 percent by mid-afternoon on July 18. It was the sharpest decline in the value of Rosneft stock in over a year.

Related Article: Exxon, BP Defy White House; Extend Partnership with Russia

Still, Rosneft CEO Igor Sechin, in Brasilia, told Bloomberg News that the company is healthy enough not to need “emergency” financial help to keep operating and expanding.

Even so, Rosneft is the most indebted Russian oil company, and Andrey Polischuk, an energy specialist at ZAO Raiffeisenbank in Moscow, told Bloomberg it will need to rely increasingly on financial assistance from China, including $63 billion in advance payments for oil deliveries over the next four years.

The Rosneft statement also said the new U.S. sanctions had missed their mark, doing more damage to Western interests than to Rosneft itself. “Rosneft is a public company traded on Russian and international exchanges,” it said. “Therefore the sanctions inflict damage upon the company shareholders, including U.S. citizens and residents.”

In fact, the British oil giant BP, which owns fully 19.75 percent of Rosneft, could face financial losses due to the sanctions. Meanwhile, the Russian company is in the midst of a deal to buy Morgan Stanley’s oil-trading subsidiary, though Morgan Stanley said it didn’t appear that the sanctions would affect the transaction.

Rosneft also is involved in several joint initiatives with leading international energy companies, including ExxonMobil and Statoil, to extract oil from Russian wells and offshore reserves in the Arctic.

By Andy Tully of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News