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. 

Rusneftegaz can announce that we are to continue with our research and development program for a further five years, with the latest version commencing immediately and due to expire in 2029. The new plan replaces its previous iteration, which concluded at the end of last year, albeit with many projects incomplete as a direct consequence of the coronavirus pandemic and its aftermath. However, our executive leadership has resolved that the scope of such undertakings is to remain unchanged, with our priorities remaining focused upon ventures that could be lucrative for our organization in the long term. Chief amongst these are our schemes to reduce emissions and fuel consumption in our power generation unit in conjunction with our work in the realm of hydrogen production. Both such endeavors are viewed as critical to the future of our corporation, with our management seeking to maximize our options should an energy transition take place, conceivably within the next few decades. Whilst there are no executives in our enterprise who view this as a probable scenario, the collective view of our board is that it is essential to hedge the success of our existing operations against any developments that may undermine our achievements. In response to the publication of this new strategy, our Deputy Chief Executive Officer, Aleksandr Filyurin, issued the following remarks:   

“Firstly, it is necessary for the board and I to put on record our thanks to all the research and development staff that have done some great work over the last five years. They have at times been working under extremely challenging conditions, much like all our other staff were during the pandemic and the difficult times that followed afterward. Ultimately, what we have faced during the past five years has not only helped us build resilience but strengthened this company and made it better because of it. As we continue business as usual, it is important to refocus and double our efforts. Obviously, the fact that our strategic review is still ongoing has somewhat inhibited the decisions that we could make in this cycle. When we have decided the exact direction that Rusneftegaz is going to take over the next few years, we don’t want to be committed to projects that are going to potentially be of no use to us down the line. It is no secret that our trading division is now the largest and most financially important part of our business, and to be honest again, we don’t need an enormous R&D budget to remain competitive. Things have changed a lot here since 2020, not just around the world but internally too, and we have adjusted to that. However, there is every reason to be optimistic about the future of this great company, and I am proud to say that I work here.”  

The cornerstone of our research and development program continues to be the education and training of our workforce, who remain vital to the success of all our operations. Not only does this include providing ample opportunities for personal progression, but it also entails ensuring that all our personnel can work with state-of-the-art equipment and technologies. Our organization is continually investigating the current best practices to appraise if these advancements should be incorporated into our own ways of operating, regardless of whether the functions are technical or purely administrative. In recent times, this has involved analyzing the suitability of artificial intelligence for each of the production units, in addition to examining the most effective ways of mitigating viral contagion in enclosed spaces. Such work is not only crucial to our progress as an enterprise, but it is also paramount for easing the workload of our employees and contractors, allowing for greater productivity as a result. Studying the latest improvements and upgrades for the apparatus we deploy in the field similarly remains essential in facilitating increases in efficiency, with Rusneftegaz having invested hundreds of millions of dollars over the past decade to modernize each sector of our company. This has been most evident in our power engineering division, with electricity now generated more cleanly, effectively and safely than ever before in our corporate history. 

In congruence with these plans, Rusneftegaz also intends to continue collaborating on research programs with a plethora of institutions and universities, as we have done so for the past two decades. Throughout this time we have contributed to various studies, particularly geological and seismological surveys, as a consequence of which we have built several beneficial partnerships with local and international entities. While such endeavors have undoubtedly been fruitful, our board has ultimately decided that it is in the best interest of the corporation to limit the volume of non-academic proposals pursued in this revision. Despite the fact that there are a range of reasons for this decision, the foremost justification for such action is that the ongoing strategic review of our current operations means that our business may be radically redefined. Our executive leadership is wholly convinced that a broad, overarching strategy is currently inappropriate, and this plan must instead be adapted if necessary once the outcomes of this comprehensive audit are disclosed. Consequently, no new projects are to be funded in this R&D cycle, and in certain cases financing will be restricted for existing works. For instance, it has been mutually agreed between our researchers and managers that our intention to build modular power plants across the globe is implausible before 2030 at the earliest, and thus the scheme can go on hiatus for the foreseeable future.  

Likewise, plans to construct our own equipment and apparatus have been cancelled entirely, although no corresponding investments were made for this during the last five-year period due to the coronavirus pandemic. Conversely, the first blueprints for a major research hub were drawn and staff tasked with locating a suitable site, but progress on this has been sluggish, and the notion has now been abandoned. All such programs are to remain within the jurisdiction of their respective production units, with only administrative functions remaining under centralized control and otherwise retaining broad oversight of all these affairs. Whilst there are to be no structural or financial changes to our ongoing work regarding catalytic reformation and electrolysis, which our management believes is imperative for the long-term growth of this enterprise, a proposal to establish prizes for advancements in the energy sector has been delayed and will return at a later date. As previously discussed, this development strategy may be revised upon the completion of the strategic review that is due to be completed imminently and published at our annual general meeting in April. However, our board of directors is erstwhile in its belief that all the expenditure on training and education will be more than sufficient to meet the needs of our organization for the next five years, while simultaneously ensuring Rusneftegaz remains a modern, dynamic and innovative company. Any updates or revisions to this will be notified in due course, and any relevant inquiries must be directed via the conventional channels. We necessitate your cooperation and understanding with this pertinent matter. 

Rusneftegaz can today publish the latest incarnation of our website, which has been radically revised to improve the user experience of the site and offer additional information pertaining to our corporation and its commercial operations. The changes, which have gone live with immediate effect, have resulted in a substantial redesign of each of our webpages in a more minimalist style, primarily to suit a more modern aesthetic. This initiative, which was instigated at the behest of the staff at our international office, should also be a significant upgrade to the mobile edition of the website and the speed at which both it and the main desktop version load. While this is unquestionably a major enhancement over all prior renderings, it must be noted that this has not been at the expense of the content we issue. Hence, none of our preexisting features have been removed to facilitate these improvements, ensuring that all relevant maps, images, and tables have been retained for later use. In fact, this update has yielded a notable amount of new resources being added, mostly related to career opportunities with us and further details regarding our corporate structure. As before, we shall endeavor to provide routine updates via the news section, which maintains an extensive archive of all our affairs over the course of the past decade. We believe that this, in conjunction with all the other materials we have disclosed, actively demonstrates our enduring commitment to trading in an orderly and transparent manner. Following this transformation in our online presence, our Deputy Chief Executive Officer, Aleksandr Filyurin, commented:    

“As a growing and ambitious company, Rusneftegaz is always looking to hire the best candidates for the job and looking for new partners to work with, so it is always very important to make a good first impression in this business. Using this principle, a good website is very important for a company of our stature. I have been very impressed by the work done by my colleagues in the technology department; they understand these principles in their entirety. What makes it an even greater achievement is that Kuznetsov implemented this himself; he was proactive and did all this work alongside the regular demands of his job. I am very proud of him. It is men like him that make this such a great company.” 

​The new site has been designed and built internally by our Director of Information Technology, Mikhail Kuznetsov, who created the previous iteration of this website five years ago. To do this, he utilized the architecture of the earlier rendition to ensure that the modifications only took six weeks to implement from project commencement to completion. Once again, he will bear responsibility for the ongoing management and maintenance of this, and all associated matters, on a permanent basis for the foreseeable future. However, although this modernization has undoubtedly been a considerable improvement to our online identity, we can also simultaneously disclose that we are currently forming plans to work with a third party to develop a new site in the months ahead. Our leadership has been contemplating this proposal for some time, and now believes that it is in our long-term interests to establish a platform that illustrates our continued success. Whilst an announcement as to which firm we have opted to partner with will be forthcoming at the pertinent time, we will work diligently regardless to guarantee that this website remains the best resource available with respect to Rusneftegaz and our activities. Any queries about these amendments, or any other questions referring to our enterprise and its digital media, should be directed via the usual channels if necessary.