November 12, 2024 at 03:02AM
Wall Street Journal (gated) with the report.
In brief:
The plan under consideration would merge major Russian oil companies Rosneft, Gazprom Neft, and Lukoil into a single entity to strengthen control over global energy markets and support Russia’s economy during wartime.
The merged company would become the world’s second-largest crude producer, behind Saudi Aramco, and could leverage its size to secure higher oil prices from markets like India and China.
The plan faces opposition from some executives at Rosneft and Lukoil and challenges in funding the acquisition of Lukoil shareholders’ stakes.
Kremlin and company spokespeople have denied knowledge of such a deal or dismissed the report, with Rosneft suggesting the news could be a tactic to influence competitors.
Talks have occurred, but no decision has been made, and the plan’s details remain uncertain.
This article was written by Eamonn Sheridan at www.forexlive.com.
