Russian oil company under investigation

Another Western-financed Russian oil company is under investigation by the Kremlin for alleged tax fraud.

Russneft, a mid-sized producer backed by Switzerland’s Glencore, is being scrutinised by the Russian Interior Ministry. Documents have been seized and senior executives, including Mikhail Gutseriev, the company president, questioned.
Russneft has grown to a 300,000-barrel-a-day oil company in just four years. This is less than a fifth of rival Rosneft’s daily production but the rapid expansion of the company has caught the attention of analysts. Led by Mr Gutseriev, Russneft swept up numerous small Russian oil producers and refiners in its first few years.

Glencore, the Swiss commodities trader and major shareholder in Xstrata, is thought to have provided financing to Russneft in return for an equity stake.

The Times