Rosneft CEO Igor Sechin has criticized the Central Bank’s policies, stating they do not consider the interests of Rosneft and the Russian oil industry. He also highlighted concerns about rising costs due to tariff increases by monopolies like Transneft and Russian Post.

Sechin, commenting on Rosneft’s financial results for the first quarter of 2025, stated that the Central Bank’s exchange rate decisions fail to account for the company’s economic conditions. This, he said, leads to additional costs in calculating the taxable base and currency conversion, and it undervalues oil in rubles.

He also pointed out that rising transport costs, particularly rail transportation, are adding to the financial strain.

Specifically, Transneft’s tariffs for oil pumping increased by 9.9% from January 2025, while tariffs for transporting petroleum products and freight rail transportation rose by 13.8% from the end of 2024.

Sechin noted that tariff increases among major companies, which he referred to as natural monopolies, are outpacing inflation. He cited the increase in prices for Russian Post services, noting that sending a simple postcard has become 20% more expensive since the beginning of 2024.

Electricity tariffs were increased by 9.1% from July 2024, with a further 11.6% indexation planned for July 2025.

The forecast for socio-economic development indicates that the indexation of regulated prices for gas, electricity, and network companies will exceed projected inflation this year, further accelerating Rosneft’s cost inflation.

Rosneft’s unit costs for hydrocarbon production in the first quarter of 2025 were $3 per barrel. While net profit increased compared to the previous quarter, it decreased year-on-year due to rising key rates.

The company’s expenses related to interest payments on loans and borrowings increased 1.8 times year-on-year.

Despite these challenges, the Board of Directors has decided to pay final dividends to shareholders in the amount of 14.68 rubles per share, bringing the total dividend amount for the past year to 51.15 rubles per share.