And the king is naked! Gazprom and Rosneft, the two largest pillars of the Vladimir Putin regime, crash
The global crisis, the deterioration of the system, American intervention, the Ukrainian footprint and the European demarche are the elements that destroy Gazprom and Rosneft, the two largest state monopolies of the Russian economy .
The two pillars on which the crown of the Russian empire hangs cracked. Losses of Rosneft , the Kremlin’s gold mine, in the first quarter of 2020 reached $ 2.2 billion. Losses of Gazprom , the baton of Kremlin diplomacy, $ 4.3 billion. Moreover, this happens to Gazprom for the first time.
These figures are of great importance for the Russian economy, since gas and oil account for approximately 40% of federal budget revenues. The economy itself in April, according to the Russian Ministry of Finance, failed at a disastrous 28%.
Even more important are losses for Russian geopolitics. Since 2007, its concept has been aimed at building an energy superpower, a world thunderstorm, and a stronghold of anti-Americanism. The general sponsors of this aggressive diplomacy are Gazprom and Rosneft. Bottomless barrels for Russian authoritarianism. But the ” pot is empty.”
However, there was no crisis, it was only at the very beginning of its destructive path. The first quarterly failure of the two oil and gas monopolies of the Kremlin began even before the start of the COVID-19 pandemic, the global decline in industrial production and the contraction of all consumer markets. There is no longer a shortage of oil and gas in the world. And their cost is now much lower than the profitability that the oil and gas monsters of Russia have determined for themselves.
So, hydrocarbon production has to be curtailed, customers bow, competitors smile, do not offend partners and wait. Wait until the price of a barrel of oil starts to creep away from today’s $ 30 and below to at least $ 50, and gas returns from $ 40 to at least $ 130 per 1,000 cubic meters. m
“ With all his power within Russia, Putin can do nothing with the global economy and can do nothing with the price of oil,” says Sergey Aleksashenko, head of the Development Center analytical group.
Putin may seem helpless in the world, but he is still omnipotent in Russia. What the Kremlin leader demonstrated on May 22, extending for five years a contract with the most wasteful state manager of Russia, and perhaps the world, Rosneft’s executive director Igor Sechin. What a sure sign: Russians do not give up, they adapt.
Top manager of the state oil monopoly Sechin is a man from the so-called coalition of St. Petersburg friends of Putin. The position of another Petersburg friend of President Alexei Miller, the head of Gazprom, is also unshakable. True, changes are outlined here. “It seems to me that some cat ran between Putin and Miller,” Aleksashenko notes. “And it is possible that this cat is connected with Ukraine.”