We can today confirm that from 1 July our correspondence address is to change, and consequently all interested parties should update their records accordingly. After this date, all mail deliveries must be sent to Rusneftegaz, 1-y Krasnogvardeysky proezd 15, Moscow, 123100. Any documents or packages addressed to us, or to any of our subsidiaries, affiliates, employees or board members, at our current office immediately thereafter will be redirected to our new site for a brief period following this relocation. However, it is imperative to note that the postal diversion service is only temporary, only taking effect for a ninety-day span until the end of September. Thus, it is critical that all materials are dispatched to us at our new headquarters from that day onwards to guarantee delivery to the correct recipient. In response to this announcement, our Deputy Chief Executive Officer, Aleksandr Filyurin, issued this statement:

“I am delighted that we are going to be relocating to Moscow City in a few weeks. Now that Rusneftegaz is regularly reporting billion-dollar revenues each year, the board and I felt that we needed to do this as a part of our structural review as we look to continue our upward trajectory. Moscow City is simply far better for us right now in our current situation; there is plenty of space for us to expand into, and we will be situated amongst some of the biggest companies in the world, which is exactly where we want to be. To be honest, it is far easier to attract the brightest and the best there, be that in terms of business or just in terms of staff, which will undoubtedly be a positive for us in the long term. I think that overall, this move is a testament to the success that we have realized over the past few years and shows our ambition for the years ahead. We are moving into a place that is far more suited to our current requirements as a rapidly expanding company and should help us grow even faster.”

This move marks the beginning of the implementation of our corporate structure review, which commenced in September last year after it was approved by our stakeholders at our annual general meeting in April. While this is merely the first stage in the execution of this program, our executive leadership remains broadly optimistic that there will be a number of further announcements during the months ahead pertaining to this subject. In the meanwhile, our administrative department will endeavor to contact all interested parties before the transition to our new office and will invite each of them to update their records accordingly. As a result, anyone who regularly sends mail or packages to our organization should be assured that we shall continue to receive all deliveries promptly and in due course for the foreseeable future. All questions regarding these updates may be directed through the usual channels of email or telephone, depending on convenience for those affected by this matter. We necessitate your cooperation and understanding with this pressing situation.

As previously alluded to following our annual general meeting last month, Rusneftegaz can today confirm that we have now finalized a new five-year investment program, ultimately replacing the previous iteration that concluded six months ago. The latest set of proposals published in this document will not be circulated publicly but are vastly different from all prior versions of this strategy, largely reflecting the major changes to our enterprise and the consequential events that have unfolded over the course of the last decade. Although its precursor faced significant revisions while it was effective as a result of the coronavirus pandemic and geopolitical tensions, the most compelling determinants for the now-current plan were internal factors rather than external influences. In response to these developments, our Deputy Chief Executive Officer, Aleksandr Filyurin, gave the following remarks:  

“I am very pleased that we are beginning the next phase of our investment program. Obviously, we have been in transition for the past few years, and I am happy that we now have a plan that reflects how we are operating now. We have made a lot of progress here in a very short amount of time. Commodity trading is now obviously the most important part of our operations, so to be able to invest even more in expanding it further is really great, you know? I mean, that is not to say that we don’t value the other parts of our business, we have invested a lot of money building our oil and electricity operations over the past ten years. And if you look at how it has been worked out, there is not much more we can do there without wasting money, so I really think that we have made the right decision here. To be honest, I am pleased that we can move on to our next round of projects. Our financial forecasts for the next few years are really strong, and I am very excited to be part of it.”    

It is noteworthy that since 2015, we have allocated substantial amounts of funding to upgrade our infrastructure and enhance our existing assets. Consequently, all our business units have now fully completed overhauling all their respective production facilities, and thus expending additional funds on equipment that is now state-of-the-art is no longer necessary. Similarly, it should also be noted that our undertakings have evolved markedly in recent times, with international commodity trading emerging as the most critical of all our operations. This radical transformation means that we have been required to adapt accordingly, and with this duly considered, impetus must be placed on acquiring even larger volumes of crude oil and refined petroleum to expand this venture further. With even greater resources potentially at our disposal, we would increase our capability to ship such products to every corner of the world, greatly expanding our impression within the broader global market. 

Both the outline and principal objectives of this strategy were approved by our stakeholders at the yearly congress, with our board of directors then formulating the outcome of these discussions into a coherent policy that can be implemented throughout the remainder of this decade. Resultantly, our executive leadership has opted to instigate a vastly different program for the next five years, with our investment budget to be reduced accordingly. For example, we have not allocated any spending for the acquisition of any new assets for the duration of this plan, although a generous fund has been apportioned to maintain all our existing sites to the highest standard possible. In this cycle, our management believes that increasing production rates through purchasing oil extraction licenses or power generation, either in Russia or internationally, should not be a priority at this time. While both geopolitics and economic circumstances serve as major factors behind this particular decision, we have expended vast sums in the past attempting to acquire new ventures globally with limited tangible outcomes, and hence such outlays have been curtailed.  

It is also vital to note that market conditions currently favor the sellers of such properties over potential buyers, and it is therefore fiscally inefficient to engage in these actions at a financial premium. In spite of this, Rusneftegaz does retain an extraordinary capacity to borrow should any lucrative opportunities arise in the future, and as exhibited in the past few years, our plans shall always be adaptable if necessary. Whether this was to accommodate the delays caused by the pandemic or to grow our trading operation to include agrochemicals, our versatility remains one of our greatest strengths. However, if we were to consider borrowing money in the immediate term, any cash loaned would presumably be utilized to expand our international marketing activities, but it is crucial to note that our corporation is not a prolific debtor.

Although the changes that are to be realized over the ensuing years are comprehensive and will encompass all areas of our enterprise, we shall continue to fund all the existing schemes that we deem fundamental for our long-term prosperity. With this taken into account, it is imperative that our ambitious research and development projects are in no way inhibited or delayed, and thus the budget for each of these proposals has not been cut. Ultimately, our board views our studies into hydrogen power and electrolysis as critical to ensuring we mitigate the potential impact of any adaptations to the energy supply in the decades ahead. We have similarly assigned a material amount to execute the results of our corporate strategic review, with the outcome set to be announced in the coming months after the plans were approved by our shareholders at the last annual general meeting.

The notion that this action is necessary at this stage is a testament to our recent success and how the outlook for our business remains wholly positive in both the short and long term, despite the evident challenges that we face. We still hold tremendous ambition as we seek to expand our presence in the market further and ultimately sustain our period of exceptional growth. At present, we remain well-equipped to capitalize on any improvement in economic conditions in what is an ever-evolving world and believe that this new strategy shall enable this to continue accordingly long into the future. Any queries regarding these developments may be directed via the conventional channels of email and telephone, but please be aware that we have no intention of circulating any materials publicly at this time. We necessitate your cooperation and understanding in relation to this important matter.

Our annual general meeting was once again convened in Moscow on 4 April, where we were joined by various delegates, including our key stakeholders, managers and senior leadership, for major discussions relating to our long-term ambitions and our immediate objectives. The event began with the disclosure of our consolidated financial statements for 2024, that were audited pursuant to all relevant laws and compiled in accordance with International Financial Reporting Standards, otherwise known as IFRS. This was later approved in a vote by our shareholders, in conjunction with the corresponding director’s report, amongst a plethora of other motions that were also considered on the day itself. Whilst several ballots can be deemed routine, such as reelecting all the members of our current board, reappointing our third-party auditor for another year and retaining the composition of our audit committee, a number of exceptional measures were also carried. Foremost, the research and development strategy that was publicly announced last month was endorsed unanimously, in addition to our preliminary 2025-2029 investment plan, which will now be disclosed within the new few weeks. After the conclusion of these polls, our Deputy Chief Executive Officer, Aleksandr Filyurin, delivered the following remarks:  

“I am delighted that we are able to report excellent results for 2024. I have worked for Rusneftegaz for over ten years now, and I cannot believe the transformation that has happened here in that time. You have to remember that when I first joined this company it was in a bad way, almost the entire board had been dismissed, and everything seemed in decline. If I think back to it, I am sure that Rusneftegaz announced a big loss for 2014, and that was after making a lot of cuts in the years before I arrived here. Well, now it is completely different, and when I say different, I mean really, really different. I mean, if you had said that I would still be here ten years later announcing billion-dollar revenues, I am not sure that I would have believed you. It really has been a great year for us, I mean, not only from a business point of view, but to be here marking our 25^th anniversary and undergoing a big rebranding. It has definitely been a high point in my time here. That said, all this wouldn’t be possible without the great team that we work with, and the board and I would like to thank all our staff for another fantastic year here. I hope that for all of us, there are many more years of success to come.”  

Perhaps the most significant decision resolved during the session was related to our corporate structure review, with each of the corresponding proposals arising from this set to be implemented over the next twelve months. Despite the fact that the results from the final report will not be publicly released at this present moment, we intend to make various announcements pertaining to this subject accordingly. It should be noted that this analysis of our organization has been made necessary as a result of our rapid rate of growth in recent times, and comes just over one decade after an almost identical assessment when we opted to replace several members of our board. Whilst the findings of this particular study have ultimately recommended a different course of action to this, we believe that the suggested approach to this matter will have a much greater impact not only upon our company, but on our wider business itself. The broader consequences of the implementation of these changes are liable to be similar to the outcome of our new research and development strategy, in addition to the latest incarnation of our investment plan, both of which are facing a real terms cut in spending over the next five years.  

Although this may be construed negatively as an indictment on the performance of our business, the difference between this perception and reality is vastly different. Ultimately, our firm has spent vast sums on new infrastructure during the past ten years, and in combination with the transformation of our operations that has simultaneously unfolded throughout the same timeframe, there is no need to for us to maintain our previous levels of expenditure. All our current facilities are now wholly modernized and utilize state-of-the-art equipment, and thus we have no need to make any further improvements at present. By formalizing these reductions, our management forecasts that we shall retain a substantial volume of the funds we earn, which can then be reinvested into alternative areas. In the latest version of the spending program, the capital would instead be used to acquire crude oil and refined petroleum products that are essential for the success of our international trading division. This proposal received a comprehensive endorsement from all our key stakeholders, who similarly opted to forego a dividend for another twelve months to enable this scheme to function as planned, therefore significantly increasing our future holdings of inventory as a result.  

With the potential to substantially expand our market size because of this new strategy, we are projecting that our enviable financial performance shall be noticeably boosted within the next few years. In the more immediate term, however, we can disclose that we once again achieved record revenues and profits for the last twelve months, with this success also forecasted to continue into the present fiscal year. As previously discussed, the vast majority of this turnover can be attributed to our global commodity trading division, which in recent times has emerged as the most critical area of our business, whereas our conventional production activities now report more modest progress in economic terms. Nonetheless, the expansion of the former is only set to intensify further as we incrementally increase sales of agrochemicals in due course. Although this particular area of our corporation only commenced trade recently, it is exhibiting the capacity to become a large proportion of our commerce by the end of the decade. Whilst this is currently less significant in scale than many of our other corporate undertakings, when considered in tandem with our wider international marketing operations, it provides us with strong reasons to be optimistic regarding both our imminent and long-term future. Any questions pertaining to our annual general meeting or the subjects in this article may be submitted via email or telephone in a timely manner. We necessitate your cooperation and understanding with this important matter.