All major Russian oil companies report profit decline
All major Russian oil companies faced a two- to three-fold drop in profits in the first half of 2025.
Source: The Moscow Times
Details: Falling oil prices, a new wave of sanctions and a strengthened rouble hit Russia’s resource-dependent economy. According to company reports, all of the country’s biggest oil producers saw profits decline by two to three times in the first half of 2025, the publication said.
Rosneft, which extracts half of Russia’s oil, reported a fall in profits from 773 billion roubles (US$9.7 billion) to 245 billion roubles (US$2 billion), the Moscow Times noted.
"OPEC countries actively increased production, which hit global prices, and there was also ‘an expansion of the discount on Russian oil due to tighter EU and US sanctions restrictions’," explained Rosneft's head Igor Sechin.
Lukoil lost half of its profits, earning 287 billion roubles (US$3.6 billion) compared with 590 billion roubles (US$7.4 billion) a year earlier. Gazprom Neft’s profits shrank by 54% to 150 billion roubles (US$1.8 billion); Tatneft’s almost tripled decline left it at 54.2 billion roubles (US$680 million); and Russneft’s profits dropped 3.2 times to 11.8 billion roubles (US$148 million). Surgutneftegaz even turned loss-making, posting minus 452.7 billion roubles (US$5.6 billion) over the six months.
"In general, the oil and gas industry — which accounts for every fourth rouble in the budget and almost 20% of national GDP — lost 50.4% of its aggregate profit, according to Rosstat, Russia's Federal State Statistics Service, data. Meanwhile, 45% of companies ended the half-year in the red, with total losses of 749.5 billion roubles (US$9.4 billion)," the Moscow Times reported.
Background:
- Earlier, it was reported that China is seeking to increase purchases of Russian gas via the existing Power of Siberia-1 pipeline, as negotiations on building a second line have stalled.
- Oil processing at Russia’s Kuibyshev refinery, which is owned by Rosneft, was halted on 28 August following Ukrainian drone strikes.
- Russia revised its oil export plan from western ports in August, increasing it after Ukrainian drone attacks disabled several refineries and freed up more crude for export.
- Reuters estimates that Ukrainian attacks have disrupted at least 17% of Russia’s oil refining capacity.
Support Ukrainska Pravda on Patreon!