Mr.Gutseriev will fight the crisis

  The Board of Directors of RussNeft implemented early termination of the authorities of Mr. Gutseriev as the President of RussNeft on February 2, 2015, the annual report of the company says. Oleg Gordeyev, Senior Vice-President was appointed as the new president starting from the 3d of February. Mr. Gutseriev changed Mr. Gordeyev in the position of the Chairman of the Board of Directors of RussNeft. Gutseriev chairs the Board of Directors of Neftisa as well.
RussNeft representative says staff changes are explained by “massive expansion of the activity of RussNeft and Neftisa and significant growth of the objectives of strategic management <...> which the Chairman of the Board of Directors of the companies faces”. Mikhail Gutseriev is aimed at solving tactical objectives within fighting the crisis in the industry, construction, real estate, banking included into the range of interests of BIN group”, the representative of RussNeft added.
Mr. Gutseriev established RussNeft at the beginning of 2000s. He had to leave Russia in 2007 when tax authorities filed a claim on recovering the shares of RussNeft in favor of the state, criminal proceedings were initiated against the businessman himself. Afterwards Mr. Gutseriev returned to the country and bought the company back. During the time of his immigration he founded the company Neftisa.
Mikhail Gutseriev said in the interview to Bloomberg in February of 2014: “Within 3.5 year of immigration I founded oil-producing capacities in the amount of 4.5 mln of tons. <...> I spent USD 1.5 bn. The price of the assets shall make up USD 4.5 bn”. He informed on his plans to consolidate RussNeft and Neftisa as well as to transfer part of the shares of the Swiss Glencore on account of the debt. He estimated the price of the consolidated oil company producing 17 mln tons and having 700 mln tons of reserves in USD 18 bn. IPO was planned for 2016. The plan of consolidation is still in force, the term depends on development of the crisis, the source close to RussNeft informs.
The general production of the companies included into RussNeft group amounts to 18 mln tons of oil, processing amount makes up 8 mln tons, the representative of the company says. According to the results of 2014 the net loss of RussNeft increased in 4.7 times up to 101 bn rubles, the annual report says. Short-term and long-term obligations amount to 254.7 bn rubles.
Vitaly Kryukov, Small Letters Director, says that a big debt of RussNeft will not hinder on consolidation: RussNeft got back Orsky oil processing plant. It means that Mr.Gutseriev plans to establish a vertically-integrated business. But consolidation may be implemented not that fast because of the circumstances on the market.