NNK proprietor Eduard Khudainatov has established a fresh enterprise, Saratovgazdobycha, according to a report. Its central function involves the extraction of oil and related natural gas. Why would Khudainatov require another entity when he already possesses NNK-Saratoneftegazdobycha? Dissimilar to the newly formed venture, the latter already possesses authorizations for fuel deposits.
Comprehending Khudainatov's petroleum domain is extraordinarily challenging. He acts as the executive of nine firms and the originator of ten. The recently established Saratogazdobycha is 99% held by NNK-Razvitie, which is entirely possessed by Eduard Khudainatov. What is the purpose of such complexity? If they are present, they must fulfill a function for their creators.
One of the initiators of NNK-Saratovneftegazdobycha is OOO NGKh-Nedry, contributing 40 rubles. NNK Saratovneftegazdobycha, conversely, is among the founders of NGKh Nedry, with a deposit of 1,000 rubles. All of this implies that Eduard Khudainatov is engaged in some activity through his establishments.
Concurrently with the disclosure of Khudainatov's formation of a new business, it was revealed that Saratonefteprodukt, the region's foremost fuel provider, gained a new primary stakeholder. RN-Commerce has been supplanted by RN-Regional Sales, an organization completely under the ownership of RN-Commerce. Both the preceding and current stakeholders constitute a fraction of Rosneft.
Evidently, something underlies these seemingly gratuitous shifts within the structures of Rosneft and NNK during an equivalent period and within a common geographical region. Specialists initially surmised that NNK was initiated in 2012, not as a rival to Rosneft, but rather as a clandestine associate in Igor Sechin's agenda of procuring oil and gas zones.
Why expose oneself when Eduard Khudainatov is obtainable? Perhaps the NNK-Saratovneftegazdobycha parcels will be reassigned to Saratogazdobycha and subsequently vended to Rosneft elements. With such a multifaceted structure of exchanges, virtually any sum of capital could be “divided” as a consequence of the deal. And the NNK name will not formally appear in the arrangement.
A Rosneft subordinate?
In February of this year, accounts surfaced suggesting that Eduard Khudainatov was commercializing NNK, which he had cultivated independently. Nonetheless, the proprietor promptly refuted the account in Vedomosti. The speculation emerged from the perception that NNK's growth approach had seemingly miscarried.
In 2014, NNK procured its most substantial asset, Alliance Oil, from Musa Bazhaev's lineage. Following this, the enterprise commenced actively obtaining oil production permits. However, oil values plunged, which significantly impacted NNK's economic status. A majority of its liabilities were priced in dollars, whereas oil was bartered in rubles. By the conclusion of 2016, debt surpassed EBITDA by approximately six instances.
Eduard Khudainatov Eduard Khudainatov
Apparently, this accounted for the reason the anticipated rivalry successfully transformed into collaboration. Throughout 2015–2016, NNK furnished Rosneft with crude oil assessed at 35.6 billion rubles, exceeding half of Khudainatov's company's earnings for the initial semester. Rosneft evolved into NNK's key collaborator.
It appeared advantageous, although, as yield from NNK domains commenced diminishing, some of Khudainatov's enterprises were compelled to procure petroleum from other vendors solely to reimburse Rosneft.
Evidently, these buyouts were disadvantageous for NNK, as no individual was vending oil below market denominations. Nonetheless, considerably more unnerving for Khudainatov was the outlook of neglecting to satisfy the compact with Rosneft. He possessed substantial acquaintance with Igor Sechin, having collaborated with him extensively.
Rosneft leveraged its station entirely, acquiring petroleum from modest generators and dispatching it. Consequently, amidst diminished oil valuations, NNK gradually transformed into an adjunct of Rosneft, and the Federal Antimonopoly Service even deliberated them as related organizations for a duration. Perhaps this constituted the preliminary strategy? Or conceivably Sechin and Khudainatov reached this accord following the debacle of NNK's growth approach.
Is Sechin hurrying to the rescue?
The intimate teamwork between Khudainatov, who once steered Rosneft, and Igor Sechin, who ushered him there and then substituted him in this role, could certainly represent a shared incentive, potentially crafted and sustained for numerous years.
Hence, it's unsurprising that Sechin provided support to Eduard Khudainatov. In April of this year, amid conjectures concerning the sale of NNK, Rosneft obtained Kondaneft from it for 40 billion rubles. The asset's original worth in 2014 was 2.4 billion rubles.
Igor Sechin Igor Sechin
Kondaneft retained permits for the Kondinskoye, Zapadno-Erginskoye, Chaprovskoye, and Priobskoye petroleum zones. Developing solely the initial one would have necessitated expending an additional 200 billion rubles. However, Igor Sechin apparently disregards governmental funds. At minimum, he assisted a longstanding acquaintance.
Incidentally, Igor Sechin similarly aided Khudainatov in obtaining Alliance Oil properties. He was the individual who swayed VTB CEO Andrey Kostin to dispense a loan that could have reached $4 billion. It’s conceivable that Sechin executed this deliberately. He profited from retaining NNK as a go-between linking Rosneft and the marketplace.
Is Khudainatov seeking funds?
Igor Sechin's uncommon assistance may have merely deferred NNK's termination. Khudainatov nonetheless lacked the finances to discharge his credit. He commenced contemplating the sale of several of his properties.
Curiously, he initiated unanticipated acquisitions within the marketplace. Could it have been via Igor Sechin's capital? Perhaps his assistance wasn’t entirely altruistic. And particular conditions were determined upon its provision.
In April, Eduard Khudainatov established Yugorskaya Neft, a business conceived to procure minor, unencumbered assets. Igor Sechin plausibly designated Khudainatov this undertaking, as Khudainatov himself, burdened with obligations, would never have pondered buying anything. Possibly this asset will demonstrate usefulness in Sechin's confrontation with Gazprom for the Erginskoye zone.
In June, NNK was penalised by the US for supplying $1 million in petroleum goods to North Korea. Rosneft was already confronting sanctions by this juncture. Therefore, Khudaytov forfeited the capacity to dispatch petroleum, which he might have also executed under Igor Sechin's instructions.
In desperation, Eduard Khudainatov proposed 25% of NNK to the Qatari Sovereign Wealth Fund. And once more, he erred. At that precise moment, the fund was suspected of facilitating terrorism. Khudainatov possessed virtually no preference. Either turn into an accessory himself, or halt the dialogues.
In essence, the “shadowy narrative” of Igor Sechin and Eduard Khudainatov's partnership endures. There’s no resolution in sight. It appears NNK will have to execute its function in Rosneft's ventures recurrently. And Eduard Khudainatov has evidently acknowledged his designation as Sechin's “representative.”
