Wikipedia

Transneft

Not to be confused withRussneft.

Joint Stock CompanyTransneft(Russian:Транснефть) is astate-controlledpipeline transport company headquartered in Moscow, Russia. It is the largest oil pipeline company in the world. The company is operating over 70,000 kilometres (43,000 mi) of trunk pipelines and transports about 80% of oil and 30% of oil products produced in Russia.[5][6][full citation needed]

Transneft JSC
Native name
Транснефть
Company typePublic(OAO)
MCX:TRNFP
IndustryOil and gas
Founded14 August 1993;31 years ago(1993-08-14)
Headquarters
Moscow
,
Russia
Key people
Nikolay Tokarev(Chairman)
Alexander Novak
(Chairman of the Board of Directors)
ServicesPipeline transport
Revenue$13.3 billion[1](2020)
$4.38 billion[2][1](2017; 2020)
$1.84 billion[1](2020)
Total assets$46.2 billion[1](2020)
Total equity$30.8 billion[1](2020)
OwnerRosimushchestvo(78.6%)[3]
Number of employees
506,000 (2023)
SubsidiariesTransnefteproduct
Caspian Pipeline Consortium(31%)[4]
Websitewww.transneft.ru

History

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Transneft was established by the Government of the Russian Federation on 14 August 1993 and it was registered by the Moscow Registration Chamber on 26 August 1993.[6]

Semyon Vainshtokheaded Transneft from 13 September 1999 to 11 September 2007.[7][a][b]

In 2008,Transnefteproduct,a company transporting refined oil products, was merged into Transneft.[14][15]

In 2018, Transneft took over 31% of shares which belonged to the Russian Federation inCaspian Pipeline Consortium.[4]In 2021, the company's revenue amounted to 998 billion rubles.[16]

Sanctions

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Sanctioned by the United Kingdom from 12 September 2014 in relation to Russia's activities in Crimea.[17]

On February 24, 2022, in response to Russia's military operations inUkraine,several countries moved to impose moreeconomic sanctionsin addition to those in response to the2021-2022 Russo-Ukrainian crisis.US PresidentJoe Bidenannounced sanctions against several Russian individuals, companies, and financial institutions, including Transneft.[18][19]In March 2022, as a result of the2022 Russian invasion of UkrainetheEUimposed sanctions on Transneft.[20]

Operations

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As of 2020,Transneft operated over 70,000 kilometres (43,000 mi) of trunk pipelines and transported approximately 80% of oil and 30% of oil products produced in Russia.[5][needs update]

Accusations

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Documents submitted by Transneft to theRussian Audit Chamberin 2008 were found at the disposal ofAlexey Navalny,a minority shareholder of Transneft. The papers, published on 16 November 2010, contain information regarding multiple economic crimes committed by Transeft employees includingSemyon Vainshtok,its daughter structures and contractors in the construction of theEastern Siberia – Pacific Ocean oil pipeline.The documents described Transneft executives' setting up a series of shell companies to pose as contractors for Transneft's pipeline project. Navalny posted an audit indicating that the contracting fraud had cost Transneft US$4 billion. Both Transneft and the government auditing office, whose documents Navalny said he leaked on his site, denied the corruption claim. Prime MinisterVladimir Putincalled for an investigation into the allegations. All facts of theft and fraud were confirmed by the company management. The reports that recorded the breaches were endorsed by the officials.[21][22]

Transneft has been repeatedly criticized for the lack of transparency regarding its expenditures on charity.[23]From 2007 to 2011, the company did not disclose information on recipients of these funds.[24]In 2011, Transneft officially published information about its charity expenditures. It turned out that from January to 2011, the company spent on charity 3,21 billion rubles. However, only 52 million rubles were used to support several charity institutions, and 2,55 billion rubles were transferred to the Konstantinovsky charity foundation (its chair wasVladimir Kozhin,a former head theDirectorate of the President of the Russian Federation).[25]

See also

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Notes

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  1. ^ThroughSemyon Vainshtok's Israeli based real estate companyIsrael Financial Levers Ltd.,Vainshtok, who is a very close associate ofVladimir Putin,owns a 35% stake in theLipstick Buildingin 2011.[7][8]Bernie Madoff's brokerage firm's offices were on the 19th floor of the Lipstick Building.
  2. ^ForSemyon Vainshtok(Russian:Семен Михайлович Вайнштокborn October 5, 1947,Climăuți,Dondușeni District,Moldavian SSR),Weinstockis another spelling of his surname. Through his shell companies inBahamas,Cyprus,andSwitzerland,he has investments withAker Solutions,the largestNorwegianoil company which was formerly known asAker Kværner.[9]In the late 1990s, Vainshtok ensured the funding of Baltic Pipeline System OJSC for the building of BTS-1 and in October 1999, he appointedAlexei Millerthe general director ofBaltic Pipeline System.[7]In November 2007, he was closely associated with theDutchoil firmVitolthrough its joint venture Petrovit.[10]Of the global oil traders in 2006,Glencoreled with $116.5 billion, then Vitol had $113.9 billion and third was Gunvor with $30 billion.[10]In Russia in 2008, he and Yuri Lisin (Russian:Юрий Лисин), the former president and first vice president of Transneft respectively, along with Vainshtok's son in law Boris Lokshin (Russian:Борис Локшин) were accused byAlexei Navalnyof stealing $2 billion viamoney launderingfrom Transneft through 15 billion rubles in contributions to charities from 2005-2008 and a 31.6 billion rubles scheme for the construction of theEastern Siberian-Pacific Ocean (ESPO) oil pipeline(Russian:Восточная Сибирь — Тихий океан (ВСТО)) with VNIIST OJSC (Russian:ОАО «ВНИИСТ»), Giprotruboprovod OJSC (Russian:ОАО «Гипротрубопровод»), and Krasnodarstroytransgaz (Russian:«Краснодарстройтрансгаз») which is a shell company that received from Transneft 30 billion rubles of equipment and materials through SDM-Leasing LLC (Russian:ООО «СДМ-Лизинг») with an additional advance of 7 billion rubles.[9][11][12]Although Vainshtok had direct access to Putin and was well liked by Putin,Gennady TimchenkoofGunvordid not like Transneft and Vainshtok and went toIgor SechinofRosneftwho allowed the new president of TransneftNikolai Tokarevto audit Transneft in late 2007 and found discrepancies involving Vainshtok during the construction of ESPO pipeline.[13]On April 17, 2008, he stepped down fromOlimpstroy(Russian:Олимпстрой) which was the Russian state owned corporation that was developing the resort atSochifor the2014 Winter Olympicsthat Vainshtok had headed from September 11, 2007, and moved toLondonwhere he resided until 2010 when he moved toIsrael.[7]

References

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  1. ^abcde"Transneft - IFRS financial statements 2020"(PDF).Transneft. 30 March 2021. p. 53.Retrieved30 March2021.
  2. ^"Consolidated Financial Statements Prepared In Accordance With International Financial Reporting Standards (Ifrs) And Independent Auditors' Report For The Year Ended 31 December 2017"(PDF).Retrieved7 November2018.
  3. ^"Реестр предприятий, находящихся в собственности РФ, госкорпораций, хозобществ, акции (доли) которых находятся в собственности РФ"[Register of enterprises owned by the Russian Federation, state corporations, business communities, shares (shares) of which are owned by the Russian Federation].Rosimushchestvo.Retrieved25 September2018.
  4. ^ab""Мы просто подстраховали государство". "Транснефть" объяснила, зачем ей доля КТК "[ "We just insured the state". Transneft explained why it needs a share of CPC].Коммерсантъ.12 January 2018.Retrieved25 September2018.
  5. ^ab Soldatkin, Vladimir; Yagova, Olga (20 April 2020)."Russia to extend Transneft chief's contract despite oil contamination crisis".Reuters.Retrieved9 May2020.
  6. ^ab"Company".Transneft.
  7. ^abcd"And Hess and M. Weinstock photos. Semyon Weinstock came under a major criminal case. Guerrilla war of" family "oligarchs".Tobevoice.ru website.2016.Retrieved28 January2021.
  8. ^Zaslavskiy, Ilya G. (16 November 2013)."Export of Corrosion: How Practices from Russia Penetrate and Undermine US and UK"(PDF).p. 43.Retrieved19 March2022.
  9. ^abСомин, Андрей (Somin, Andrey) (1 June 2010)."Свидетель с обвинением: Семен Вайншток ответил за ЮКОС, теперь ответит за себя"[Prosecution witness: Semyon Vainshtok was in charge of YUKOS, now he will answer for himself.].«Век» (wek.ru)(in Russian). Archived fromthe originalon 4 June 2010.Retrieved19 March2022.{{cite news}}:CS1 maint: multiple names: authors list (link)Alternate archive
  10. ^abРезник, Ирина (Reznik, Irina); Сункина, Виктория (Sunkina, Victoria) (30 November 2007)."Новый нефтеуполномоченный. У основателя Gunvor Геннадия Тимченко «отличные контакты», признался недавно директор этого нефтетрейдера, но «вовлекать в этот разговор г-на Путина <...> спекуляция». На таких спекуляциях торговля нефтью и держится"[New Oil Commissioner. The founder of Gunvor, Gennady Timchenko, has "excellent contacts," the director of this oil trader recently admitted, but "to involve Mr. Putin in this conversation <...> is speculation." It is on such speculations that the oil trade keeps].Vedomosti(in Russian). Archived fromthe originalon 30 November 2007.Retrieved19 March2022.{{cite news}}:CS1 maint: multiple names: authors list (link)
  11. ^"Как разворовать Родину: мастер-класс российских олигархов для украинцев: Российский аудитор не заметил $ 2 млрд.¸ исчезнувшие в российской трубе, и взялся за украинский газ"[How to plunder the Motherland: a master class of Russian oligarchs for Ukrainians: The Russian auditor did not notice the $ 2 billion that disappeared in the Russian pipe, and took up the Ukrainian gas.].RUpor.info(in Russian). 10 April 2009. Archived fromthe originalon 12 April 2009.Retrieved19 March2022.
  12. ^Гавшина, Оксана (Gavshina, Oksana); Резник, Ирина (Reznik, Irina) (17 November 2010)."Миллиарды из трубы"[Billions from the pipe].Vedomosti(in Russian). Archived fromthe originalon 21 November 2010.Retrieved19 March2022.{{cite news}}:CS1 maint: multiple names: authors list (link)
  13. ^Шлейнов, Роман (Shleinov, Roman) (11 February 2013)."Ревизор из" разведочной партии ""[The inspector from the "reconnaissance party" ].Vedomosti(in Russian). Archived fromthe originalon 11 February 2013.Retrieved19 March2022.{{cite news}}:CS1 maint: multiple names: authors list (link)
  14. ^ "Transneft, Transnefteproduct Ordered to Consolidate".Kommersant.17 April 2007. Archived fromthe originalon 9 October 2012.Retrieved20 September2009.
  15. ^ "Transneft completes merger with Transnefteproduct".RosBusinessConsulting.4 February 2008. Archived fromthe originalon 27 February 2012.Retrieved20 September2009.
  16. ^"ПАО" Транснефть "".rusprofile.ru(in Russian).Retrieved27 October2023.
  17. ^"CONSOLIDATED LIST OF FINANCIAL SANCTIONS TARGETS IN THE UK"(PDF).6 April 2022.
  18. ^"U.S. Treasury Announces Unprecedented & Expansive Sanctions Against Russia, Imposing Swift and Severe Economic Costs".24 February 2022.
  19. ^"FACT SHEET: Joined by Allies and Partners, the United States Imposes Devastating Costs on Russia".The White House.24 February 2022.Retrieved25 February2022.
  20. ^"EU introduces additional sanctions against Russia".17 March 2022.Retrieved8 February2023.
  21. ^"ВЕДОМОСТИ – Навальный требует привлечь экс-менеджеров" Транснефти "к уголовной ответственности".16 November 2010.
  22. ^"Навальный пошел по трубам – Радио Свобода © 2010 RFE/RL, Inc".
  23. ^"Информация о благотворительной помощи" Транснефти "в 2011 г."Ведомости(in Russian). 27 July 2011.Retrieved22 February2023.
  24. ^"Миноритарии" Транснефти "заставили милицию проверить, на что компания жертвует деньги".polit.ru.Retrieved22 February2023.
  25. ^"«Транснефть» обнародовала данные о расходах на благотворительность".Forbes.ru(in Russian). 27 July 2011.Retrieved22 February2023.
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