Kremlin comments on decree greenlighting Rosneft share sale

Vladimir Putin recently authorized transactions with the shares of state-run oil producer

President Vladimir Putin’s authorization of transactions involving the shares of the Russian oil giant Rosneft is related to corporate issues that remain confidential due to current economic and geopolitical circumstances, Kremlin spokesperson Dmitry Peskov told reporters on Wednesday.   

Peskov’s remarks came in response to a question about whether the decree is linked to preparations for the sale of BP’s stake in Rosneft. Despite its 2022 announcement to divest, the British oil major continues to hold a $14 billion equity stake in the Russian state-controlled company.  

Last week, Putin signed a decree lifting a 2022 ban on sales of Rosneft shares. The resolution permits entities to “directly or indirectly establish, modify, terminate, or encumber ownership rights” to shares in Rosneft and its subsidiaries.  

Observers have interpreted the move as potentially facilitating the sale of BP’s 19.75% stake in Rosneft. The British company declared its intention to exit its Russian investments in February 2022 but has yet to finalize the sale of its holdings in Rosneft and its three joint ventures with the oil producer.   

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“These are corporate development matters that cannot be conducted openly, especially given the challenging and unfriendly global economic environment,” Peskov said when asked about BP’s involvement.   

In August 2022, Putin issued a decree prohibiting transactions involving shares of Russia’s strategic companies, barring firms from “unfriendly states” from selling their stakes in Russian financial and energy assets without government approval. This restriction was implemented to shield Russia’s economy from external pressures amid Western sanctions.   

Rosneft’s current shareholders include Qatar’s sovereign wealth fund, which holds an 18.46% stake, Russian state entity Rosneftegaz with 40.4%, and Rosneft subsidiaries RN-NeftCapitalInvest and RN-Capital, which own 9.6% and 0.76%, respectively.  

The latest decree comes as Rosneft is negotiating the sale of its assets in Germany, including the Schwedt refinery. The facility, Germany’s fourth largest, provides 90% of the fuel used by the city of Berlin. The German government seized control of Rosneft’s German assets in 2022 and placed them under trusteeship.