Transneft

Transneft is a state-controlled oil pipeline company headquartered in Moscow, Russia. It is the world's largest oil pipeline company. , it operated over 70000 km of trunk pipelines and transported about 80% of oil and 30% of oil products produced in Russia.[2][3]

History

The Government of the Russian Federation established Transneft on 14 August 1993, and the Moscow Registration Chamber registered it on 26 August 1993.[3]

Semyon Vainshtok headed Transneft from 13 September 1999 to 11 September 2007.[4]

In 2008, Transnefteproduct, a company transporting refined oil products, was merged into Transneft.[11][12]

In 2018, Transneft took over 31% of shares which belonged to the Russian Federation in Caspian Pipeline Consortium.[13] In 2021, the company's revenue amounted to 998 billion rubles.[14]

Controversies

Documents submitted by Transneft to the Russian Audit Chamber in 2008 were found at the disposal of Alexei Navalny, a minority shareholder of Transneft. The papers, published on 16 November 2010, contain information regarding multiple economic crimes committed by Transeft employees, including Semyon Vainshtok, its daughter structures, and contractors in the construction of the Eastern Siberia–Pacific Ocean oil pipeline. The documents describe how Transneft executives set 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 Minister Vladimir Putin called for an investigation into the allegations. The company's management confirmed all facts related to theft and fraud. The officials endorsed the reports that recorded the breaches.[19][20]

Transneft has been repeatedly criticized for the lack of transparency regarding its expenditures on charity.[21] From 2007 to 2011, the company did not disclose information on recipients of these funds.[22] In 2011, Transneft officially published information about its charity expenditures. It turned out that from January 2011, the company spent 3.21 billion rubles on charity. 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 was Vladimir Kozhin, a former head of the Directorate of the President of the Russian Federation).[23]

See also

• Energy policy of Russia
• 2007 Russia–Belarus energy dispute
• Petroleum industry in Russia

External links

• Official website in English
• Transneft news
• Transneft press releases
• Publications about Transneft
• A Transneft JSC Shareholder Intends to Bring the Company Management to Criminal Liability