Russia’s Rosneft head office may move to Far East

March 27, 2014

Rosneft is on the list of the state companies which may be relocated to the Far East. The document was drafted by the Russian president’s representative in the Far East federal area, Yury Trutnev. The list will be made public after its approval by Vladimir Putin and Prime Minister Dmitry Medvedev.

Rosneft’s administrative staff will be cut if the move is approved. At the same time, experts do not see any economic sense in the relocation. Rosneft head Igor Sechin is not in favour of it either.

The federal government expects that Rosneft’s central staff will move to one of the Far East’s largest cities, and that Rosneft will be re-registered in the region. This will contribute to the regional budget as Rosneft managers enjoy very high salaries and bonuses. In 2012, Rosneft paid 9.1bn rubles to its top managers. In 2012-2013, Rosneft transferred 1.7tn and 2.7tn rubles respectively to the consolidated budget. Profit tax payments alone amounted to 95bn rubles in 2012, while no data for 2013 are available as yet.

Copyright: Pravda URFO, 2014