The Kremlin is discussing the possibility of uniting Russia’s largest oil companies into one megastructure. This would entail Rosneft taking control of Lukoil and Gazpromneft. The deal would significantly strengthen Putin’s control over global energy markets and Russia’s military economy if the deal goes through.
The combined structure would become the second largest oil producer in the world after Saudi Aramco, producing almost three times more than the largest American company, Exxon Mobil. This would allow the Russian Federation to more effectively circumvent Western sanctions and obtain favorable prices from buyers in India and China. Negotiations on this issue have been ongoing for several months, but the final decision has not yet been made, and the plans may change.
However, Putin’s desire to consolidate the oil and gas sector to support the war effort remains clear, as oil and gas are the primary revenue sources for the Russian economy, accounting for about a third of the federal budget.