Russia’s new oil order

Over the past decade, Russia’s oil and gas companies have held two big lures for investors. The first was their privileged position in a country brimming with oil and gas. The second was the silver lining of decades of Soviet mismanagement. By applying western methods and technology to existing, poorly developed sites, Russia’s majors could milk them for cash with less need to invest in exploration.

For independent domestic operators, Moscow’s recent “realignment” of the energy sector has undermined both these advantages.

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