ROSNEFT EYES NEW FIELDS IN EASTERN SIBERIA AND BEYOND

Rosneft, Russia’s state-owned oil titan, has been pursuing a very aggressive policy in recent months in order to boost its clout in Eastern Siberia. In the meantime, Rosneft’s pro-active approach has been seen as a part of the Kremlin’s broader strategy to rely on major state-controlled energy companies.

Last December, Irkutsk regional authorities and the TNK-BP oil consortium settled their differences over an 11.29% stake in Verkhnechonskneftegaz. Now the stake is expected to go on the auction block for some 2.1 billion rubles (about $70 million) in the first quarter of 2006, while Rosneft is widely expected to place the winning bid.