What's happened
Russia is exploring a merger between state-backed Rosneft Oil, Gazprom Neft, and Lukoil, potentially creating the world's second-largest oil producer. This move aims to bolster the economy amid Western sanctions and support the war effort in Ukraine, despite significant internal opposition and financing challenges.
Why it matters
What the papers say
According to the Wall Street Journal, the proposed merger would create a company that could rival Saudi Aramco, pumping nearly three times the output of Exxon Mobil. However, sources indicate that executives from Rosneft and Lukoil have expressed opposition, complicating the discussions. The Independent highlights that these talks are part of Putin's broader strategy to leverage the energy sector for economic and military support amid sanctions. Meanwhile, The Moscow Times notes that while speculation is rampant, the actual execution of the merger is uncertain due to significant internal and financial obstacles.
How we got here
The discussions around this merger have emerged as part of President Putin's strategy to strengthen Russia's energy sector, which is vital for the economy. Oil and gas account for nearly a third of federal revenue, making this merger a critical consideration amid ongoing sanctions.
More on these topics
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Saudi Arabia, officially the Kingdom of Saudi Arabia, is a country in Western Asia constituting the bulk of the Arabian Peninsula.
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Ukraine is a country in Eastern Europe. It is the second-largest European country after Russia, which borders it to the east and northeast.
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Gazprom Neft, is the third largest oil producer in Russia and ranked third according to refining throughput. It is a subsidiary of Gazprom, which owns about 96% of its shares. The company is registered and headquartered in St. Petersburg after central off
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The PJSC Lukoil Oil Company is a Russian multinational energy corporation headquartered in Moscow, specializing in the business of extraction, production, transport, and sale of petroleum, natural gas, and petroleum products.
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PJSC Rosneft Oil Company is a Russian integrated energy company headquartered in Moscow. Rosneft specializes in the exploration, extraction, production, refinement, transport, and sale of petroleum, natural gas, and petroleum products.
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Exxon Mobil Corporation, doing business as ExxonMobil, is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller's Standard Oil, and was formed on November 30, 1999 by t
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Russia, or the Russian Federation, is a transcontinental country located in Eastern Europe and Northern Asia. Covering an area of 17,125,200 square kilometres, it is the largest country in the world by area, spanning more than one-eighth of the Earth's in
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Vladimir Vladimirovich Putin is a Russian politician and former intelligence officer who has served as President of Russia since 2012, previously holding the position from 1999 until 2008.