ICYMI-Russia considering merging its oil companies into world’s 2nd-biggest crude producer

Wall Street Journal (gated) with the report.

In brief:

• The plan under consideration would merge major Russian oil companies Rosneft, Gazprom Neft, and Lukoil into a single entity to strengthen control over global energy markets and support Russia’s economy during wartime.

• The merged company would become the world’s second-largest crude producer, behind Saudi Aramco, and could leverage its size to secure higher oil prices from markets like India and China.

• The plan faces opposition from some executives at Rosneft and Lukoil and challenges in funding the acquisition of Lukoil shareholders’ stakes.

• Kremlin and company spokespeople have denied knowledge of such a deal or dismissed the report, with Rosneft suggesting the news could be a tactic to influence competitors.

• Talks have occurred, but no decision has been made, and the plan’s details remain uncertain.

This article was written by Eamonn Sheridan at www.forexlive.com.