Transneft


Joint Stock Company Transneft is a state-controlled pipeline transport monopoly headquartered in Moscow, Russia. It is the largest oil pipeline company in the world. Transneft is operating over of trunk pipelines and transports about 80% of oil and 30% of oil products produced in Russia. The company is led by Nikolay Tokarev.

History

Transneft was established by the Government of the Russian Federation on 14 August 1993 and it was registered by the Moscow Registration Chamber on 26 August 1993. In 2008, Transnefteproduct, a company transporting refined oil products, was merged into Transneft.
In 2018, Transneft took over 31% of shares which belonged to the Russian Federation in Caspian Pipeline Consortium.

Operations

Transneft is operating over of trunk pipelines and transports about 80% of oil and 30% of oil products produced in Russia.

Accusations

Documents submitted by Transneft to the Russian Audit Chamber in 2008 were found at the disposal of Alexey Navalny, minority shareholder of Transneft. The papers, published on 16 November 2010, contain information regarding multiple economic crimes committed by Transeft employees, its daughter structures and contractors in the construction of the Eastern Siberia – Pacific Ocean oil pipeline. The documents described Transneft executives' setting up a series of shell companies to pose as contractors for Transneft's pipeline project. Navalny posted an audit indicating that the contracting fraud had cost Transneft US$4 billion. Both Transneft and the government auditing office, whose documents Navalny said he leaked on his site, denied the corruption claim. Prime Minister Vladimir Putin called for an investigation into the allegations. All facts of theft and fraud were confirmed by the company management. The reports that recorded the breaches were endorsed by the officials.