Sanctions, Bashneft Arrest Put Rosneft in the Spotlight

摘要

Hit hard by Western sanctions, state-controlled Rosneft nevertheless continues to set the pace on the Russian oil scene, hungrily eyeing the assets of Bashneft, whose owner Vladimir Yevtushenkov was this week placed under house arrest, and gearing up to trumpet an Arctic oil discovery with Exxon Mobil, even though it could be the US supermajor’s last act in Russia before the noose tightens. In a bid to tackle declining oil production, Rosneft is getting closer to taking over Bashneft, Russia’s sixth-biggest oil producer, after its billionaire owner and chairman was charged this week with money-laundering in connection with the 2009 acquisition of the company. The move is being compared with Yukos case and is seen as a further blow to investor confidence in Russia.