A storm in the oil market has caused a sharp drop in profits for a company owned by Putin's friend — Reuters
Rosneft, the largest oil producer in the aggressor country, has released its 2025 financial report, which shows a catastrophic decline in performance.
The oil giant’s net profit fell to 293 billion rubles ($3.60 billion), marking a sharp decline compared to previous periods.
Reuters attributes this financial fiasco to a combination of factors, among which Western sanctions and strict domestic policies play a key role.
In particular, profits are being squeezed by “high interest rates, high income taxes, and sanctions,” which have significantly restricted the company’s operations.
Rosneft CEO Igor Sechin, commenting on the results, acknowledged the critical state of the industry.
According to him, last year the Russian oil sector found itself in a “perfect storm” of negative geopolitical factors and extremely difficult domestic macroeconomic conditions.
The situation for Russian energy giants worsened last fall.
In particular, Rosneft and Russia’s second-largest oil producer, Lukoil, fell under direct U.S. sanctions in October 2025, which blocked a number of financial transactions and logistics routes.
Even the escalation of the situation in the Middle East and the corresponding rise in global oil prices did not bring the companies the expected windfall profits.
The high cost of raw materials on the global market was completely offset by the rise in associated costs for selling Russian oil.
Sechin emphasized that the costs of transporting oil have risen exponentially.
He noted that “high oil prices are largely offset by the rising cost of transporting Russian ‘black gold,’ as well as insurance and other expenses.”
The most telling example of the logistical collapse was the Indian route. In March, freight rates for transporting oil to India from Baltic ports exceeded $20 per barrel.
This is “10 times higher than the cost of delivering oil from Russia to Europe in early 2022,” making exports virtually unprofitable.
As a reminder, Gazprom and Rosneft helped evacuate Ukrainian children.
Additionally, Ukraine expects a large-scale exchange with Russia over Easter.
The U.S. will fund the return of Ukrainian children abducted by Russians.
