• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 2 days America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 5 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 5 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 days Putin and Xi Bet on the Global South
  • 6 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 7 days United States LNG Exports Reach Third Place
  • 7 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Russia Expands Control Over Oil Pipeline Monopoly

A Transneft share swap could give the Russian sovereign wealth fund more control over the oil pipeline monopoly, according to a new report by Reuters.

The Russian government already owns 78.1 percent of the company, all of which are ordinary shares. The rest of the company consists of preferred shares, which are traded by smaller investors. The Russian Direct Investment Fund bought shares from United Capital Partners earlier this year after the latter group decided to liquidate a portion of its assets.

RDIF directly owned 0.43 percent of preferred shares after the UCP purchase, while the RDIF’s joint investment venture with China owns an additional 1.49 percent, Gazprombank told Reuters.

“We see a chance to significantly increase the exposure - our partners from Asia and the Middle East are interested in this,” RDIF head Kirill Dmitriev said in a telephone interview, without adding where the fund plans to buy the new shares.

The Gazprombank group and a special wing of Transneft own 53.6 percent of the pipeline company. Dmitriev now has plans to get the Russian government to convert all of Transneft’s preferred shares into ordinary ones.  

“This would allow shareholders to more actively take part in the company’s business while the state would retain the control, holding 78 percent (in the capital after conversion),” he said.

Related: Kyrgyzstan Unveils Revamped Transnational Gas Pipeline

Low oil prices and administrative opposition have long delayed plans to privatize Transneft. Moscow has been working with the Organization of Petroleum Exporting Countries (OPEC) to raise oil price by making a concerted effort to lower production from some the world’s largest producers.

ADVERTISEMENT

Oil producers in Russia and Saudi Arabia are pushing to extend the Organization of Petroleum Exporting Countries’ (OPEC) production cuts until June of next year, according to a new report by The Wall Street Journal. The deal, which lowers the bloc’s output by 1.2 million barrels per day, is already set to extend until March 2018.

By Zainab Calcuttawala for Oiprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News