Top Russian oil producer Rosneft reports profit of $7.22 billion
US imposes tough sanctions after Moscow launches a special military operation in Ukraine
The debt of the Russian company also fell by 12% compared to the beginning of the year
Moscow, Top Russian oil producer Rosneft on Thursday reported a 13 percent jump in half-year net profit to 432 billion rubles ($7.22 billion) in defiance of US sanctions. Russian oil companies have faced Western sanctions after an attack on Ukraine that disrupted Russia’s global trade and transaction system. According to a report by Reuters news agency, Rosneft CEO Igor Sechin said in a statement that the company has managed to perform well despite unprecedented pressure from unfavorable external factors and illegal sanctions.
Since Moscow launched a special military operation in Ukraine on February 24, Russia has seen Western investment flow out of its country. Similarly, British oil major BP announced in February that it was divesting its 19.75 percent stake in Rosneft, which is valued at $25 billion. With the departure of BP, it was believed that the Russian oil company may have to face heavy losses. However, despite the sanctions, Rosneft saw gains as oil sales grew by 5.7% in the January-June period. Along with this, the debt of the company has also come down by 12 percent as compared to the beginning of the year.
Cheap oil is the big reason
Despite the sanctions, Russia offered to sell its oil at cheap prices to big countries like India and China. Also, after the rise of the dollar, Russia allowed these countries to do this transaction in the national currency, due to which many countries bought oil without giving dollars. Also the sanctions did not have much effect on Russia. Let us tell you that Rosneft produced 4.85 million barrels of oil per day in the first half of the year, which is 1.5 percent more than a year ago.
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First Published: 15 September 2022, 14:50 IST