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DECEMBER 2020

Public Conflict Between Transneft And Rosneft Signals Increasing Struggle Within Russian Elites

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Public Conflict Between Transneft And Rosneft Signals Increasing Struggle Within Russian Elites

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Russian pipeline monopoly Transneft and oil producer Rosneft have taded barbs over the contaminated oil crisis in the Russian Druzhba export pipeline which took place in April. Transneft and Rosneft are among the most important Russian companies that have hundreds of thousands employees, multi-billion dollar budgets and own security services. Some even call them a kind of states within the state.

On July 8, Transneft criticised oil producer Rosneft saying that it had allegedly made mistakes in quality controls and made unsubstantiated damages claims. According to the Transneft version, Rosneft was unwilling to participate in resolving the Druzhba export pipeline contaminated oil crisis.

“Letters, on behalf of Rosneft, were sent to the authorities of the country with claims of compensation without any documents which could confirm any real losses or real damages,” Transneft said

Rosneft denounced the Transneft version of the event saying that it had read the statement with “regret” and “bewilderment”.

“Instead of not so constructive comments, we’d like to see a clear and public plan of measures, eliminating the prospect of fraud with raw materials in the system of main pipelines,” it added.

Public Conflict Between Transneft And Rosneft Signals Increasing Struggle Within Russian Elites

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According to reports in Russian media, over the past year, the struggle within the Russian elites and power groups have increased significantly. This struggle reportedly became one of the reasons behind a recent series of corruption scandals and criminal cases involving security services, government officials and influential businessmen.

Rosneft’s Igor Sechin and Transneft’s Nikolai Tokarev do have a long-standing conflict over, according to Russian sources, some personal issues. Besides this, Rosneft and Transneft have repeatedly clashed in the past over a number of issues competing in their sphere of interests and for the government funding.

The increasing standoff between various power groups in the puhlic sphere came amid the softening control on the internal political situation from President Vladimir Putin and his inner circle during the past few years when Russia was engaged in an especially compicated standoff with its global competitors.

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