EKONEFT JSC was one of the last vertically integrated oil companies to emerge from the reorganization and large-scale privatization of Russia’s oil industry in the years following the dissolution of the Soviet Union.

Initially, EKONEFT JSC was established in 1993 as a state enterprise on the basis of assets previously held by Rosneftegaz, the successor to the USSR Ministry of Oil and Gas. In 1995, a Russian government decree transformed EKONEFT JSC into an open joint stock company (OJSC)

From 1995 to 1998, EKONEFT JSC management changed constantly and as a result its assets were left largely unmanaged. Oil production fell and oil refining collapsed to just one third of production capacity.

The turnaround.In October 1998, the Russian government decided to strengthen the Company’s management so that EKONEFT JSC could once again become a key player on the Russian energy market. The government appointed the Company’s current president, (C.E.O)

The new management team under EKONEFT JSC immediately began to implement bold plans which ultimately lifted the Company out of the crisis.

As a result, EKONEFT JSC had become profitable again by 2000, and from then on, the Company began a new period of strong growth, with average annual oil production increases of over 11%.