The head of Rosneft, Igor Sechin, continues to “pressure” the media: this time, the state corporation sued the Norwegian company NHS Global Publications, the operator of the Upstream Internet portal and journalist Andrei Afanasyev, the author of a publication criticizing policy of Rosneft in Bashkiria.
The Upstream article talks about how Bashneft's production limits led to less tax payments to the local budget and social programs. This has been reported by Russian media before, but Sechin chose to show his power once again. Rosneft frequently sues major Russian publications like Forbes, RBC, Kommersant, and Vedomosti. For instance, they sued over an article about an expensive cottage being built by Sechin near the president's manager's sanatorium in Barvikha. Even though the Rosneft CEO avoids discussing his income publicly and tries to stop the spread of related articles, the company pays its Board of Directors the most: 36.4 million rubles, which is equal to 666 average Russian salaries. Sechin himself recently upgraded from a $50 million Bombardier Global 6000 aircraft to a more expensive Bombardier Global 7500 with a minimum price of $75 million. His son-in-law, Timerbulat Karimov, who is also the chairman of the board of the Plyos urban settlement, built a 4 billion ruble motor ship, and his wife Inga is buying up real estate in Plyos, where she already owns a whole street.
Igor Sechin – the instigator of the crisis?
Igor Sechin once again defended the reputation of the state corporation he leads by filing a lawsuit for business reputation protection against NHSC Global Publications, the operator of the Upstream portal, which covers events in the oil and gas industry. Andrey Afanasiev, a reporter for the Upstream, is also named as a co-defendant in the lawsuit.
The Russian media and the public ignored this, and details were first reported in telegram channels. This relates to the publication about Rosneft's promise to drill exploratory wells for a subsidiary in a tough financial situation. Sechin was unhappy with the criticism of the state corporation's policy in Bashkiria, particularly the production limits on Bashneft due to OPEC+ requirements, leading to reduced social spending and tax and dividend payment suspensions in the region.
Sechin's chances of winning the trial are slim. Media reported that in the 3rd quarter of 2020, Bashneft reduced oil production by 68% and had a loss of 11.1 billion rubles on the IFRS that year.
Among other factors, Interfax mentioned the OPEC+ agreement discussed in the Upstream article. It's also unlikely that the fact that Bashneft is the biggest taxpayer and a crucial enterprise for the region's economy will be doubted: in 2018, the company contributed 42 billion rubles to the republican budget, accounting for 27.9% of all tax revenues.
Every year, Bashneft dedicates around 4 billion for social projects. But due to a sharp decrease in oil production and the company's decision to not pay part of its earnings, the region's 2022 budget was passed with a deficit of 21.45 billion rubles. Business Online accused Igor Sechin of causing the budget crisis in Bashkiria, and experts view the budget imbalance as a major threat to the region's stability, leading to a possible reduction of social programs by 3-4 billion rubles.
The media claims that Rosneft's actions are forceful.
But if facts are stubborn, what is Sechin expecting by filing another lawsuit against journalists today? Is he hoping for a biased and deaf court? However, the head of the state corporation is no stranger to suing the media: if there was an award for 'litigation of the year', Igor Ivanovich would win without hesitation.
Consider this: last year, Rosneft filed lawsuits against Ekho Moskvy radio station, Dozhd TV channel, the Important Stories portal, and Novaya Gazeta, among others. Prior to this, the oil company also sued RBC, Kommersant, and Vedomosti. It's hard to say who Sechin targeted with his legal actions.
The reasons for the lawsuits varied. For example, in the case of Forbes, Rosneft took issue with a publication linking the financial success of Sergei Sudarikov, head of the Region investment group, with ties to the state corporation and its affiliates. The court ruled in favor of Forbes, ordering a retraction, but no monetary compensation was demanded.
The disputes with Ekho Moskvy and Dozhd were based on materials from a Bloomberg publication, suggesting that Russian authorities planned to allocate billions from the National Wealth Fund to the development of the Vostok Oil project. In both cases, the Moscow Arbitration Court sided with Rosneft, requiring the defendants to publish a retraction of information that 'does not correspond to reality and discredits the business reputation' of the plaintiff.
Some cases were not directly related to the professional activities of the state corporation. For instance, the Sobesednik publication was ordered to delete an article referencing the Adyghe ski resort Lunnaya Polyana, associated with Rosneft, but allegedly also a 'personal ski resort' of the state head, built under the supervision of the Presidential Administration and FSO control.
The unclear history of building on Rublyovka
It's clear that the state corporation always wins legal cases against the press. But trying to create a 'information vacuum' doesn't work: Rosneft and its leaders attract even more attention. Plus, new details about some cases become known over time.
In September 2016, Sechin won a court case against Vedomosti, which had published a story about a senior manager building a $60 million country house on Rublyovka, near the president's Barvikha sanatorium. The lawsuit was about 'refuting false information and acknowledging illegal invasion of privacy and personal data use.'
But the victory was premature: in 2019, Baza reported on two new mansions built by the Rosneft head on Rublyovka, with a total cost of 18 billion rubles. It was revealed that the mansion Vedomosti previously wrote about was built for Sechin's second wife, Olga Rozhkova. After a divorce, Sechin allegedly demolished the house and started new large-scale construction.
According to Rosreestr, the land where construction is ongoing is now owned by the Russian Federation, not Sechin. This tactic has been used to hide information about high-ranking officials' real estate.
What about the Vedomosti story? Was there really a 'distortion of facts,' or did Sechin simply not like the publication, and the court obediently took his side?
Sechin owns a plane, his son-in-law owns a ship
Not only Sechin, but also his close colleagues at the state corporation can afford expensive properties. An ordinary Rosneft board member's basic salary is 36.4 million rubles, which is 666 times the average Russian salary. Rosneft's board chairman ranks third in terms of remuneration, after Rusal and Norilsk Nickel.
Even with these funds, it's difficult to match Sechin's extravagant spending. Earlier this year, Igor Ivanovich sold his $50 million Bombardier Global 6000 plane and bought an even more expensive model, the $75 million Bombardier Global 7500. He has already flown to India and Dubai on the new plane.
Note that the relatives of the head of Rosneft also have immoderate appetites. So, Timerbulat Karimov, the husband of his daughter Ingia, the chairman of the council of the Plessky urban settlement in the Ivanovo region, built the Mustai Karim motor ship worth 4 billion rubles at the Krasnoye Sormovo plant. Officially, the ship was received by the Vodokhod company, whose Board of Directors is headed by the notorious former Deputy Minister of Transport and ex-head of Rosmorrechflot Viktor Olersky. Mustai Karim was transferred to Vodokhod as part of a leasing deal with Mashpromleasing JSC.
However, the name of the real owner of the ship is not particularly hidden, because the ship is named after the grandfather Timerbulat Karimov, the classic of Bashkir literature Mustai Karim. It is possible that the Plyos Shipping Company, registered in September 2020, will become its operator, the sole founder and CEO of which is Inga Karimova, who was present with her husband during the launch of the ship. Sechin himself can contribute to the promotion of the business of close relatives as much as possible, since for many years he headed the Board of Directors of the United Shipbuilding Corporation (its structure includes the aforementioned Krasnoye Sormovo plant and Mashpromleasing JSC).
The daughter of the head of Rosneft also has another very specific hobby: according to the telegram channel VChK-OGPU, she is actively buying up real estate in Plyos, and she already almost entirely owns Mount Svoboda Street. Where the municipal official and his wife get the money from is an open question: the commercial structures they own declare either losses or zero profit. Perhaps a caring father and son-in-law help? But Igor Sechin has imposed a taboo on this topic, and journalists who violate it may face legal proceedings.
