Rosneft’s net profit for the first half of 2025 fell by 68.3% compared with the same period last year. CEO Igor Sechin linked the decline to sanctions, a high benchmark interest rate, and what he called “excessive” indexation of regulated tariffs, the company said in a press release.
In a statement published by the company, Sechin said the first half of 2025 was marked by an overall decline in oil prices. He cited increased output by OPEC members (Saudi Arabia, the UAE, Iraq and Kuwait), as well as widening discounts on Russian oil due to sanctions and the central bank’s high key rate.
“One of the consequences of keeping the benchmark rate elevated for a prolonged period is the excessive strengthening of the ruble, which leads to losses for both Russia’s budget and exporting companies. In addition, the high rate increases debt-servicing costs, which undermines the financial stability of corporate borrowers, reduces profits and erodes their investment capacity,” the statement said.
Sechin also said the oil industry is under “additional pressure” from rising tariffs charged by natural monopolies—rates set by the Federal Antimonopoly Service for companies that hold a dominant position in certain sectors (for example, Russian Railways in freight rail transportation or Transneft in oil product transport).
“Excessive indexation of tariffs regulated by the Russian government accelerates cost inflation, pushes up prices and is one reason the key rate is declining more slowly. Despite the Bank of Russia’s decisions in June–July, the pace of rate cuts is clearly insufficient,” Sechin concluded.
Against this backdrop, revenue fell nearly 20%—down 17.6% year over year (4.2 billion rubles versus 5.1 billion in the first half of 2024). Net profit also declined—from 773 to 245 billion rubles (about 68.3%). EBITDA dropped from 1.6 to 1 billion rubles (around 36.1%).
Earlier this week, Mechel - one of Russia’s largest mining companies - said it was cutting output due to sanctions and the central bank’s efforts to curb inflation. The company ended the first half of 2025 with a loss of 40.5 billion rubles, double the loss in the same period a year earlier (16.7 billion).
