Tatneft closes its headquarters in Zug: seaborne oil exports stop
The Tatarstan oil company closed Swiss companies a third of oil exports by sea used to pass through
Tatneft closed down two companies headquartered in Switzerland: its subsidiary Tatneft Europe AG trading company and Tatneft Explora AG financial firm. The big agency companies of Tatneft Oil AG closed because of less cooperation with European businesses amid sanctions. Earlier, LUKOIL’s Swiss subsidiary Litasco used to minimise trading operations with oil. “Many Russian oil companies are closing their subdivisions in Switzerland, since the cooperation with European counteragents is gradually stopping,” notes investment strategist of Aricapital MC Sergey Suverov.
Tatneft closes its office in Swiss Zug
Tatneft informed the closure of several subsidiaries registered in Europe on an information disclosure website. According to it, Tatneft Europe AG trading company and Tatneft Explora AG financial firm are excluded from a list of affiliated persons. Moreover, the main European subsidiary — Tatneft Oil AG that is renamed as Tatneft Europe AG — had been transformed earlier.
But this “technical” operation didn’t save the companies from the closure. They were eliminated from a registry of international companies as early as June 2022, reads ореncorporates.com European service designed to check counteragents and is confirmed by Tatneft’s message. However, the official publication of this data became possible six months later — in early 2023. The reason for the closure isn’t named.
Realnoe Vremya has contacted Tatneft PJSC asking it to comment on the closure of the Swiss subsidiaries. The company received the correspondent’s request, the answer will be published upon reception.
Seaborne oil exports closed
Tatneft’s both companies were established and operated in Switzerland for nearly 20 years. Tatneft Europe AG trading company headquartered in Swiss Zug is the main firm. It was the united exporter of Tatarstan oil by sea. In the amount of oil sales, it was in the world’s top 20 biggest exporters by Forbes in the European market. It was said that in 2017 Tatneft Europe bought 12,6 million tonnes of oil for $4,6 billion when a barrel cost $49,1. Then the company outperformed its indicators in 2015 and 2016 when export contracts totalled $2,9 billion. Oil was exported through the ports of Novorossiysk, Primorsk, Ust-Luga, Adamova Zastava (Poland) pumping station, Budkovce pumping station (Slovakia).
During those years, LUKOIL’s subsidiary Litasco with 35,9 million for $12,9 billion was called the leader of the rating. China National United Oil Corporation (28,9 million tonnes for $11 billion) is second. Rosneft’s subdivision Rosneft Trading (22,2 million tonnes for $8,3 billion) was third.
As early as 2018, the company was controlled by Tatneft Oil AG. Today’s Director General Nail Maganov who was responsible for sale in foreign markets, Financial Director Yevgeny Tikhturov, Vasily Sokolov — Zenit bank’s co-founder Alexey Sokolov’s relative — as well as four foreign top managers such as Giuseppe Santamaria, Sage Bruno were in the main company’s board of directors.
Tatneft Explora AG also worked in Zug, seemingly making settlement from seaborne oil exports. It was founded 18 years ago with an authorised capital of 150,000 CHF. Sage Bruno who retired in February 2021 managed it. Vasily Sokolov was the company’s president.
Tatneft’s exit follows LUKOIL
For instance, last week LUKOIL sold its asset on Sicilia, the newspaper’s interlocutor reminded us. Moreover, earlier this year, LUKOIL’s trading subsidiary Litasco, Switzerland, suddenly cut crude oil purchase to sell and supply it to Europe. Being LUKOIL group’s united international trade operator, it processed more than 3,6 million barrels of oil a day.
The expert thinks that now oil companies are redirecting free oil volumes to Eastern markets and to processing. So a new company ТаtSinoNavoi was added to a list of Tatneft’s affiliated persons. It is a joint venture of Tatneft, China National Chemical Engineering Co., Ltd. (CNCEC) and NavoiAzot, Tatarstan Trade House SAN. It is registered in Uzbekistan, it is designed to make petrochemicals.