Rosneft Net Income Falls 68% on OPEC Production Increases

Rosneft, Russia's largest oil producer, saw its net income fall more than 68% to $3 billion in the first half of 2025, primarily due to a decline in oil prices driven by increased production from OPEC countries including Saudi Arabia, the UAE, Iraq, and Kuwait. CEO Igor Sechin criticized the OPEC+ strategy of accelerating production growth, noting that it has led to a global oil surplus expected to reach 2.6 million barrels per day in the fourth quarter and easing to 2.2 million barrels per day in 2026. Sechin also reiterated his criticism of Russia’s central bank’s tight monetary policy, which he said artificially strengthens the ruble. Despite concerns voiced by Russia at OPEC+ meetings regarding the faster-than-expected output increases, the country ultimately supported the production hikes, partly influenced by calls from U.S. President Donald Trump to increase oil output. Additionally, Ukrainian drone strikes on Russian oil refineries in August have reduced domestic refining capacity by 17%, freeing up crude oil volumes for export but raising concerns about potential gasoline shortages and inflation within Russia. Russian Deputy Prime Minister Alexander Novak has stated that Russia can withstand any oil prices as its economy becomes less dependent on hydrocarbons.