Russia’s largest oil producer, Rosneft, announced in March it had stopped its operation in Venezuela and sold its assets to a company completely owned by the Russian government. This was done in an effort to avoid US sanctions imposed on Rosneft related companies for handling business with Venezuela. Rosneft had taken over an increasing share of Venezuela’s oil industry, including joint ventures Petromonagas, Petroperija, Boqueron, Petromiranda, and Petrovictoria as well as smaller operations. Interestingly enough, a new oil company, wholly controlled by the state, was set up in Russia shortly after Rosneft had announced its plans to leave Venezuela. The company is called Roszarubezhneft, and its logo strongly resembles the one of Rosneft. The company’s spokesman noted that Moscow was just trying to shield Rosneft from US sanctions. The change of ownership means that any future restrictions on Russian-controlled oil operations in Venezuela would target the Russian government directly. Alexander Frolov, deputy director of the National Energy Institute, explained that the way of cooperation between Venezuela and the Russian oil giant had changed. Previously, Russian gas and oil companies could cooperate directly with their Venezuelan counterparts. Now, all operations will be done through the state-backed company. Unlike Rosneft, Gazprom, and Gazprom Neft, the new oil company Roszarubezhneft is 100% owned by the Russian government what makes it more resilient to any further sanctions.
