LONDON--Russia's state-controlled oil giant OAO Rosneft said
Friday it is working out how to deal with U.S. sanctions affecting
the company as it reported a surge in second quarter net
profit.
The U.S. last week imposed sanctions that prevent people or
firms with ties to the U.S. from providing medium- and long-term
credit to some of Russia's biggest companies, including
Rosneft.
The European Union is meantime considering sanctions which could
include a ban on exports of energy technology for deep-water and
Arctic oil-drilling in Russia. Rosneft, nearly-20% owned by the
U.K. oil major BP PLC, has substantial interests in such
activities, and is partnering with the U.S.'s Exxon Mobil Corp. in
Arctic oil exploration.
"Together with our partners-the world's leading oil companies-we
are working on a plan to minimize the consequences of including
Rosneft on the sanction lists," the company said in a
statement.
The U.S. Treasury Department already in May placed sanctions on
Rosneft Chief Executive Igor Sechin over Moscow's annexation of
Crimea in Ukraine. Under the sanctions, U.S. nationals aren't
allowed to do business with Mr. Sechin, but may deal with the
company as he isn't its majority owner.
Rosneft, the world's largest listed oil producer, said its
revenue rose by 22% to 1.435 trillion rubles ($40.9 billion) in the
second quarter compared with 1.176 trillion rubles ($33.5 billion)
a year ago. Its net profit was up almost fivefold at 172 billion
rubles ($4.9 billion), largely due to a stronger ruble.
The company's oil and gas production increased by 4.6% on-year
to 5 million barrels of oil equivalent a day.
Write to Selina Williams at selina.williams@wsj.com
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