News

Rusneftegaz can confirm that we have issued a full preliminary calendar for the 2025 fiscal year, with the most significant event set to be the disclosure of our consolidated financial statements on 1 April. This shall occur three days before our Annual General Meeting, where our executive leadership will convene with our key stakeholders to discuss the economic prospects for our corporation and approve any strategic decisions that may be implemented over the duration of the next year. Nonetheless, it should be noted that the board may also opt to host an Extraordinary General Meeting in the spring or summer following the completion of the review of our business structure, which was disclosed by our management at the end of September. If this were to happen, all prospective attendees would be notified accordingly at least sixty days prior to enable proxy or absentee ballots to be processed. Beyond this, the next twelve months are expected to progress as anticipated, with our company continuing to publish our production data four weeks after the conclusion of each quarter. All of these dates for the next year have been published in their entirety on our official website, but may be subject to change. However, our directors do not anticipate any major alterations to the timing of these events in the immediate future, and any potential modifications will be announced if deemed necessary. 

As our 25th anniversary celebrations draw to a close, it should be considered that we will be unable to respond to any inquiries in the midst of the festive period as a result of the increased number of staff vacations during the Christmas season. Consequently, we politely request to any of those of whom that may be affected by this to contact us as soon as it is practical to do so. Otherwise, a prompt reply may not be received before the New Year holidays end, and whilst all our communication channels will be monitored in this timeframe for any urgent communications, it will not be a priority for our enterprise to resolve any correspondences submitted after 24 December 2024. Subsequently, our organization will then return to full administrative capacity on 9 January 2025, and we will address all outstanding messages within one working day. This also includes all our partners, subsidiaries and affiliates, each of whom is similarly impacted by these events. However, it must be noted that all of our other commercial activities will continue as normal throughout this time, including all aspects of our production and trading programs, which shall be entirely unaffected. Considering the information contained in this bulletin, any questions pertaining to this announcement must be directed either via email or telephone without delay. We necessitate your cooperation and understanding in relation to this pressing matter.

Rusneftegaz marked the conclusion of our 25th anniversary year at an event on 22 November, where we acknowledged the achievements of our staff during what has been an outstanding twelve months for the company. Attendees at the dinner in Moscow included all the members of our board of directors, a number of our key stakeholders and a selection of other delegates. This was not limited to, but comprised of, various managers and senior personnel who have served us throughout the timeframe. Collectively, the entire contingent commemorated what has been a phenomenal period for our corporation, in which not only did we pass a key milestone in our corporate history, but also reported the highest revenue total from our operations. Whilst both of these are great accomplishments, perhaps the even greater accomplishment is that we are set to surpass this figure in our financial reporting next year, thus recording record turnover in consecutive years. At the end of the ceremony, our Deputy Chief Executive Officer, gave the following remarks:

“I would like to pay tribute to all of those who have won awards this evening, they have made an invaluable contribution to the progress of Rusneftegaz over the past year and some of them have done a truly fantastic job. I would also like to pay tribute to everyone else who has also worked for us this year, so many of our staff work so hard every day to make this company a success, and we are very grateful that they are working for us and not anyone else. To be honest, it has been an amazing year for us. Not only have we celebrated our 25th anniversary, but our business itself continues to go from strength-to-strength. At the end of the day, not many companies get to mark anniversaries like this, so it is definitely a major achievement, one that we should all be proud of. We are a company that is still going strong after twenty-five years now, and I think is more than fit enough for the next twenty-five.” 

On the night itself, the two major prizes of the evening were awarded to Anton Kirilov and Matvei Sechenov, who were named as Employee and Young Employee of the Year respectively. The former was instrumental in establishing our agrochemical trading business by producing voluminous research far beyond the expectations of his peers, while the latter became the youngest member of our workforce to oversee the monthly maintenance checks at one of our production sites in the Komi Republic. The immense contribution made these two individuals, in conjunction with the eleven other recipients of special commendations this year, are just some of the reasons why our organization has reason for optimism for the next twelve months. In addition to the aforementioned expansion of our fertilizer operations, which should come to full fruition within the next few weeks, the review into our corporate structure is also set to be finalized before our Annual General Meeting. If the proposed changes are approved, there will be announcements regarding any potential developments in due course. Ultimately, this could be a transformational period for our enterprise, and we remain grateful to all of our personnel who continue to work diligently for our success regardless of what may occur in the year ahead.

Following extensive talks with a number of our key stakeholders over the past six months, it has been resolved that we will organize a comprehensive review into our current corporate structure, ultimately contemplating both the extent and nature of any changes that could be formalized in the future. This has been instigated at the request of our majority shareholder, which has asked our board of directors to form an exploratory committee with the authority to make recommendations to our leadership in due course. As a result, it has been decided that our Deputy Chief Executive Officer, Aleksandr Filyurin, will take charge of this new commission, with the remaining members being appointed from both within and outside Rusneftegaz. As an organization, we feel that composing the panel in such a manner shall enable it to gain expertise from third parties, while also accounting for factors that are unique to our corporation. This is not limited to, but includes, our rapid economic development over the past decade, and the complexities of our multifaceted production activities. In response to this announcement, the head of the body overseeing this report delivered these remarks:  

“Firstly, I would like to thank my fellow board members for appointing me to this important role. I have worked for Rusneftegaz for a long time now, longer than I have worked with any other company, and I have seen it transformed from a local oil producer to a global energy company. To be honest, it has been a remarkable change, and a lot of us had to hard to work very hard to make it happen. Now, it is time to look at where we are at, not only within this industry, but within the wider world. When these talks started taking place last summer, the rest of the board and I agreed that what was being proposed was sensible and could work. To be honest, the company we have built in our time here does not resemble the company that existed when we first started out on this project, and it is time to acknowledge that. If we want to take what we have done any further, we need to make changes. These are exciting times ahead for us, what we are planning to do can take Rusneftegaz to the next level, and I promise that I will work with diligence and speed to submit my report as soon as I can.”  

Whilst this examination is set to be a significant undertaking for us, it should be noted that it has been almost a decade since our last major restructuring. In later times, Rusneftegaz has undergone a consequential transformation, with a plethora of new interests that have emerged in the years thereafter. It is also set to occur in the midst of our quarter-centenary celebrations, and is thus an apt moment to reflect upon our previous achievements, and contemplate how to advance our progression in both the near and distant future. This ultimately entails deliberating fundamental issues, such as whether there should be greater separation between the incumbent board of directors and our executive leadership, and if independent directors should be appointed to the former. Similarly, it also involves scrutinizing the suitability of any corporate partners or individual that has the capacity to facilitate the plans we delineate, and how soon these could take effect. Any investigations surrounding our global affairs will be the responsibility of Igor Migunov, who currently serves as our Director of International Operations, and will join Filyurin on the panel completing this task. Following his appointment, Migunov gave this statement:  

“I am very grateful that I have been given the opportunity to serve on this committee. My colleagues and I will work hard to make sure that this project is successful. Since I joined Rusneftegaz in 2019, I have worked on many projects with many unique challenges. I am optimistic that with this project we will be able to create solutions for the long-term benefit of Rusneftegaz and its people.” 

Perhaps one of the most pertinent matters this analysis intends to resolve is if Rusneftegaz can be listed on a stock exchange in the near term, and how this can be instigated, accounting for any alterations that may be necessary to commence this process.  Although at present we are currently the largest private oil production company in the Russian Federation, our leadership believes it is crucial to examine if listing as a public corporation would facilitate the further expansion of our activities. Growth deriving from a flotation of our shares would originate from an enhanced ability to access finance from alternative commercial sources, which could then be invested accordingly to fund and expedite our enlargement. Similarly, it would also significantly increase our regulatory requirements for both financial reporting and other disclosures, which may embellish our reputation amongst our contemporaries, and thus make us a more credible partner to conduct business with. Whilst this review is unlikely to have the scope or the effect of a similar internal report published in 2005 that resulted in the reformation of the Group and the consolidation of our operations, it is still anticipated to have a consequential impact on this enterprise.  

This is partially due to the fact that it is likely to precede a later, more extensive, inquiry into our current corporate activities. Both our ownership and our board of directors wholeheartedly believe that such an analysis is critical, with both our investment and research strategies due to be outlined across the next two years, with each requiring comprehensive preparation beforehand. Due to the sensitive nature of discussions that will be held in the weeks and months ahead, we will not be providing any further updates until this process has concluded, nor will we be publishing the final report once it has been approved by our executive leadership. However, any changes that arise in response to this study will be disclosed in due course, with subsequent briefings expected to be published by the end of the second quarter of this year. Likewise, any additional information regarding this subject shall be circulated solely to our staff, affiliates, subsidiaries and partners, and we will not be accepting questions from external parties with regard to these affairs at this present time. We necessitate your cooperation and understanding with this vital matter.