Bashneft Explained

Bashneft OAO
Type:Public (OAO)
Location:Ufa, Bashkortostan, Russia
Key People:Nikolay Grakhantsev, (CEO)
Industry:Oil and gas industry
Owner:Rosneft (57.7%)[1]
Num Employees:8,150
Parent:Government of Russia

Bashneft is a Russian oil company formed by the transfer of the oil related assets of the Soviet oil ministry in Bashkortostan to the regional government of the Republic of Bashkortostan by Boris Yeltsin. It was then privatized during 2002-3 by Murtaza Rakhimov, the president of Bashkortostan, an ally of Yeltsin's, with a controlling interest in Bashkir Capital, a holding company controlled by Rakhimov's son, Ural Rakhimov. In 2009 a controlling interest in Bashneft was acquired for $2 billion by Vladimir Yevtushenkov[2] and placed in his holding company, Sistema, but in July 2014 he was jailed and 72% of Sistema's interest in Bashneft seized by the Russian government.[3] [4] Following seizure of the company in December 2014 Yevtushenkov was released from jail, "charges not proven," but Ural Rakhimov was reported to have fled the country.[5] It is one of the larger producers of oil products in the country.[6] The company operates 140 oil and natural gas fields in Russia and has an annual oil production of 16 million tonnes. Bashneft owns three oil refineries located in Ufa with a combined capacity of 820000oilbbl/d and 100 petrol stations.

History

The Russian holding Sistema bought a controlling stake in Bashneft in March 2009 for US$2 billion.[7] In March 2014, Bashneft acquired a 100% stake in Russian oil firm Burneftegaz in a deal totalling more than $1 billion.

Murtaza Rakhimov, Kadir Timergazin have worked in Bashneft.

In 2016, Bashneft was ranked as being among the 12th best of 92 oil, gas, and mining companies on indigenous rights in the Arctic.[8]

Bashneft has been ranked no. 48 in the Arctic Environmental Responsibility Index (AERI) that covers 120 oil, gas, and mining companies involved in resource extraction north of the Arctic Circle.[9]

On the website of PJSC Bashneft, after the introduction of International sanctions during the 2022 Russian invasion of Ukraine, information about members of the board of directors and the board of the company was deleted.[10]

See also

Notes and References

  1. Web site: Список аффилированных лиц. e-disclosure.ru. 26 August 2017.
  2. Web site: Владимир Евтушенков . 2023-03-20 . 24SMI . ru.
  3. News: Natasha Doff and Ksenia Galouchko. Sistema Shares Soar as Putin Says Evtushenkov Charges Not Proven. https://archive.today/20141227183135/http://www.businessweek.com/news/2014-12-18/sistema-jumps-most-on-record-as-owner-freed-from-house-arrest. dead. December 27, 2014. December 27, 2014. Bloomberg News. Bloomberg Business News. December 18, 2014. Russia has seized 71.6 percent of OAO Bashneft from Sistema since ordering Evtushenkov’s arrest on Sept. 16 in a money-laundering investigation linked to the state’s sale of the oil company in the previous decade..
  4. Web site: Bashneft is notified of a change of a majority shareholder. bashneft.com. Bashneft. December 27, 2014. Press release. December 10, 2014. According to the notification, 122,971,934 ordinary shares and 6,192,245 preferred shares of JSOC Bashneft (71.62% of its authorized share capital) have been transferred from the accounts of OJSC JSFC Sistema and CJSC Sistema-Invest to the account of the Federal Agency for State Property Management.. https://web.archive.org/web/20160304031416/http://www.bashneft.com/press/releases/7714/. March 4, 2016. dead.
  5. News: Steven Lee Myersand Jo Becker. Even Loyalty No Guarantee Against Putin. December 27, 2014. The New York Times. December 26, 2014. Mr. Rakhimov’s government privatized Bashneft, with most of its shares ending up in the hands of a company called Bashkir Capital.
  6. Web site: Products . bashedu.ru. 2009-09-08. https://web.archive.org/web/20090926202850/http://www.bashedu.ru/. 26 September 2009 . live.
  7. Web site: Statement Regarding JSOC Bashneft and Related Proceedings. Press release. October 23, 2014. BusinessWire.com. International. 2023-10-26. https://web.archive.org/web/20231026195408/https://www.businesswire.com/news/home/20141023006029/en/JSFC-Sistema-UK-Regulatory-Announcement-Statement-Regarding-JSOC-Bashneft-and-Related-Proceedings. 26 October 2023. live. In 2009, Sistema increased its stake in the BashTEK companies to more than 75% by entering into agreements for the purchase of controlling stakes in the BashTEK companies (the “BashTEK Shares”) from third party private Russian companies (the “SPAs” and the “Second Acquisition”). Under the terms of SPAs, the price to be paid for the BashTEK Shares was US$ 2 billion plus an additional payment of US$ 0.5 billion which, under the terms of the SPAs, was conditional on the fulfilment of a number of conditions. These conditions were not met and, as a result and in accordance with the terms of the SPAs, the additional payment of US$ 0.5 billion was not payable..
  8. Web site: Ranking Oil, Gas and Mining Companies on Indigenous Rights in the Arctic. Overland. Indra. 2016. ResearchGate. Arran. 2 August 2018.
  9. Overland, I., Bourmistrov, A., Dale, B., Irlbacher‐Fox, S., Juraev, J., Podgaiskii, E., Stammler, F., Tsani, S., Vakulchuk, R. and Wilson, E.C. 2021. The Arctic Environmental Responsibility Index: A method to rank heterogenous extractive industry companies for governance purposes. Business Strategy and the Environment. 30, 1623–1643. https://onlinelibrary.wiley.com/doi/epdf/10.1002/bse.2698
  10. https://www.bashneft.ru/corporate/directors/ the board of directors

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