News

Pertaining to the results of a concluded consultation, both the board of directors and key stakeholders have mutually agreed that the 2021 Annual General Meeting should be hosted via an online teleconference with absentee voting, as per the previous assembly in 2020. The event shall be held on the previously scheduled date of 9 April, with no changes to any items on the agendum, including motions to alter the executive remuneration policy and the appointment of an external auditor for the financial year. In lieu of this announcement, our Deputy Chief Executive Officer Aleksandr Filyurin, issued this statement in response: 

“It has been obvious to us for some time that this change needed to be made, and I am very thankful to my colleagues and our other stakeholders for making it happen. It is disappointing that yet again we will be unable to host our AGM (Annual General Meeting) fully for another year, but we understand why and to be direct with you, I fully support this move. We will continue to keep everyone who would have otherwise attended the AGM updated with all the latest news from Rusneftegaz as we have done for the past year. I, along with the rest of the board, hope that we will be able to host it in-person soon and look forward to that time.” 

It is also still intended that we publish our 2020 Consolidated Financial Statements prior to the event, which will then be analyzed during the conference with an approval vote being held accordingly. It is preferred that all ballots for each resolution shall be sent electronically, and all interested parties are to be contacted shortly with instructions as to how to submit this in due course, although a postal option is expected to be available upon request. All competed ballots must be transmitted to the relevant officer by the close of business on 8 April. Any questions in regards to these changes should be directed via email or telephone. We necessitate your cooperation and understanding with this particular matter.

As a consequence of the ongoing coronavirus pandemic, the board of directors has resolved that additional measures should be undertaken to guarantee all our existing capital commitments, and thus also the long-term financial standing of our company. After a prolonged and highly detailed review, our leadership has determined that it is far too challenging to project a formal end of this crisis, and we do not have the epidemiological expertise to do so with sufficient accuracy. Therefore, it is deemed paramount that we do our utmost to preserve the immediate and future interests of our organization and the members of our workforce. Whilst we are satisfied by the progress made over the past few months in terms of vaccine development, there remains a number of pressing concerns for our current operations. These principally pertain to several new variants that have recently emerged that appear to be both more transmissible and cause disease with enhanced severity, and could have the potential to yield further restrictions accordingly. From this perspective, we are basing all our assumptions on the basis that historical epidemics of this nature endure for approximately three years, and that we should be adequately prepared to function under these conditions for the duration of such a timeframe. Ultimately, the economic effects of this disaster have affected our corporation considerably, and will result in both revenues and profits being significantly below projections at the start of the year. Moreover, we have no desire to be wholly dependent upon government support in any of the jurisdictions we operate in to pay salaries or meet other costs, and intended to take remedial action to resolve this issue. In his announcement of these new policies, our Deputy Chief Executive Officer Aleksandr Filyurin remarked:  

“I am very pleased that we have managed to organize a deal with our owners to secure the long-term future of Rusneftegaz and our upcoming projects. Personally, I felt that it would have been a real shame if we had to make any of our staff redundant after all they have done for us since the beginning of the pandemic. It is the same as if we had needed to cancel any of the projects we have been planning, a lot of which have been in the works for quite a few years now. I do not think it is unreasonable to say that it has been an unexpectedly tough few months, and being realistic, we have no real idea how long all of this will continue. That is why, as a board, we took the decision to approach the ownership about an arrangement where we can provide guarantees to all our staff and contractors at what is a very unstable time. We do not want anyone who works for this great organization having to worry about their job, especially when there is so much to worry about already at this time. I hope now that we have eased some of the worries, and we can be ready to rebound when all this is over.”  

Thus, we can thus disclose that following lengthy and protracted negotiations, our shareholders have agreed in principle to disburse additional investment and loans if necessary to meet all our contractual arrangements that commenced prior to this health emergency. Hence, this new pact will ensure that all employee wages and other remuneration will be paid over the next twenty-four months, regardless of our business performance. Although we still intend to offer all our administrative personnel the opportunity to reduce their working hours next year, no changes will be imposed on staff that do not wish to participate in the scheme, nor will there be any compulsory redundancies in the imminent future. Likewise, it also denotes that when this endemic concludes, we shall have an ample sum of money to not only restart our investment program, but to do so at an expedited rate. While we anticipate announcing amendments to this plan after an internal analysis soon, the designated increase in cash is expected to largely mitigate the delays enforced upon us. Under the terms of the accord, the proceeds are only to be utilized if there are insufficient funds to otherwise meet the aforementioned costs, potentially leading to liquidity issues arising. However, the board of directors does not expect to use these reserves in the near-term, and are to remain solely as a contingency. In the instance that this capital is required, it must be noted that the stipulations of the deal dictate that the borrowings are to bear no interest and mature in ten years. Any questions regarding this settlement should be directed to the appropriate managers, or via the conventional channels. We necessitate your cooperation and understanding with this matter.

Rusneftegaz can today disclose a provisional calendar outlining the key dates of our upcoming fiscal year, with publication of our consolidated financial statements on 6 April 2021 acting as the primary focus for the next twelve months. This event is set to mark a significant milestone within a year filled with various activities, including our Annual General Meeting, which is scheduled to be held later that same week. Presently, the scheduled date for this conference is 9 April 2021, which will provide an opportunity for us to engage with essential stakeholders and deliberate on our immediate and future objectives, in spite of the fact that it is yet to be announced whether it will take place at a venue or virtually. Whilst it should be noted that this date is subject to change pending such announcements, we do intend to continue with our circulation of comprehensive quarterly production reports within one month the conclusion of each reporting period as a component of our routine operations. Nevertheless, it is imperative to acknowledge that potential disparities may exist between the provision of all this information to pertinent entities, and the uploading of such material onto our website. 

​Furthermore, it is important to emphasize that in the next few weeks, we anticipate a much-reduced ability to address nonessential inquiries, including those conveyed via email and telephone, as our workforce will be undertaking vacations coinciding with the Christmas and New Year holiday. The forthcoming interruption, set to transpire between 24 December 2020 and 11 January 2021, will have a consequential impact upon our administrative functions, but will have no bearing on any other facets of our operations. Therefore, it is of utmost importance that any correspondences be forwarded to us as soon as possible to ensure a timely response. However, all messages received during this period will be diligently monitored, and a reply will be furnished if deemed necessary. Following the conclusion of this timeframe, we are committed to promptly addressing all pending communications within one working day. This is also a commitment shared by all our affiliates and subsidiaries, who are similarly impacted by this occurrence. The complete preliminary calendar can be accessed in its entirety on our official website, and although the aforementioned dates are may be modified subject to the discretion of the board, albeit due to the ongoing pandemic all information published is subject to change at short notice at the discretion of our management. Should there be any inquiries pertaining to this announcement, we kindly request that these are communicated to us via the established channels at your earliest convenience, primarily to ensure a prompt response before our capacity to do so becomes restricted. We sincerely appreciate your cooperation and comprehension regarding this significant matter.

For the first time in our history, Rusneftegaz held our annual awards ceremony remotely as a result of the coronavirus pandemic inhibiting our plans to host it at a venue in Moscow. In spite of this, we managed to mark the accomplishments of our staff throughout the last twelve months in a befitting manner, with all prizes being distributed by the immediate colleagues of the winners instead of the company executives who usually perform this role. Such changes enabled us to fully conform with current distancing requirements, while also ensuring the safety of all involved. All those selected to receive rewards were nominated by their managers for their achievements over the past year, be this their outstanding contribution to our ongoing success or diligent work ethic. At the conclusion of the virtual event, our Deputy Chief Executive Officer, Aleksandr Filyurin, gave these remarks: 

“The board and I would like to express our gratitude to all our employees for their work in what has been an unexpectedly challenging year. We have been amazed by the efforts that all our staff have made to continue working despite the changes in circumstances. This includes all our staff who have been working from their own homes, to everyone out on site who has had to work under the new restrictions. At the same time, we would also like to congratulate all the prizewinners for the jobs each of them has done this year; some of the stories we have heard have been remarkable considering everything that has happened. It has obviously been an unprecedented year for not only Rusneftegaz as a company, but for the entire world. That said, we are not epidemiologists and do not know when this will end, but since it started, we have shown our resilience and have still been able to prosper. The pandemic has obviously had an impact on our plans and aspirations, but I am confident that soon we will be able to continue as we did before.” 

During the evening, the major prizes of the night were awarded to Georgi Alekseev and Martin Kozlov, who were named as employee and young employee of the year respectively. The former was acclaimed for his excellent performance in the field despite his cancer diagnosis two years ago, whereas the latter graduated first in his technical class, outscoring his peers by a considerable margin. Ultimately, in what has been a period disrupted by closures and shutdowns, our leadership also elected to present an additional seventeen members of our personnel with special commendations for their exceptional work to keep our organization functioning over the past twelve months. Each of these individuals put themselves and their families at risk to enable us to continue our operations on a day-to-day basis at some of the most tumultuous times in recent history, which we are immensely grateful for. We shall do our utmost to acknowledge the efforts of our workers, and we are indebted to all of them for their work in what has been a turbulent year. Although we do not know when this will conclude, we know that we can rely on each of them until such a time.