Putin Did Not Believe Sechin: How Rosneft Turned Out to Be Only Profitable in World

Baku/17.02.21//Turan: Rosneft, the largest production company in Russia, which accounts for every second barrel extracted from the subsoil, unexpectedly ended 2020 with a profit.

Despite the unprecedented collapse of global demand, the collapse of prices to the levels of the late 1980s and the OPEC + deal, forcing Russia to cut production to a 10-year low, the company reported a positive financial result of 147 billion rubles.

“To date, the only company from the global oil and gas sector that has turned out to be profitable is us,” the head of Rosneft, Igor Sechin, said victoriously, telling Vladimir Putin about the results of the year.

Sechin's statement amazed the head of state. "Is that the only one?" He asked.

“Today, yes,” Sechin confirmed without batting an eye. "I admit that some other leaders may appear in the reports that will be provided by the results of the year to other companies, but today this is so."

How did Rosneft manage it? Rosneft paid 823 billion rubles for the company that owns licenses for the Payakh and Irkino fields. And on my balance sheet I took into account the purchased at a cost 1.6 times higher - 1.3 trillion rubles. This allowed Rosneft to reflect 504 billion rubles as a benefit from the transaction, analysts say Raiffeisenbank. Without this amount, the company would have remained deeply in the red for the year. -0-