Published by Global Banking & Finance Review®
Posted on March 31, 2026
2 min readLast updated: April 1, 2026
Add as preferred source on GoogleRosneft’s 2025 net income plunged 73% to 293 billion roubles (~$3.6 billion), hit by high interest rates, steep profit taxes and one-off charges, even as surging oil prices driven by the Middle East conflict were negated by soaring freight, insurance and operational costs.
By Olesya Astakhova and Vladimir Soldatkin
MOSCOW, March 31 (Reuters) - Russia's largest oil producer, Rosneft, said on Tuesday that its 2025 net income declined by 73% to 293 billion roubles ($3.60 billion) due to high interest rates, a high profit tax as well as one-off factors.
Rosneft Chief Executive Officer Igor Sechin, a long-standing ally of President Vladimir Putin, also said the Russian oil industry was caught up last year in the "ideal storm" of negative geopolitical factors and tight domestic macroeconomic conditions.
Rosneft and Russia's second-largest oil producer Lukoil were sanctioned by the United States last October.
Sechin said that this year, high oil prices, bolstered by the Middle East conflict, are in large part offset by rising freight rates, insurance and other rising costs.
Front-month Brent futures hit a record monthly gain of 64% in March, according to LSEG data dating back to June 1988. U.S. benchmark West Texas Intermediate has gained around 52% in the month, its biggest jump since May 2020.
Rosneft's CEO said that in March, freight rates for transportation of Russian oil to India from the Baltic Sea's ports exceeded $20 per barrel, 10 times the costs for shipping oil from Russia to Europe in early 2022.
($1 = 81.2955 roubles)
(Reporting by Olesya Astakhova and Vladimir Soldatkin; Editing by Stephen Coates)
Rosneft's 2025 net income dropped due to high interest rates, a high profit tax, and one-off factors impacting financial performance.
While high oil prices supported revenue, rising freight rates, insurance, and other costs offset much of the financial gains for Rosneft.
Sanctions imposed by the United States on Rosneft and Lukoil in October contributed to the challenging macroeconomic conditions faced by the company.
Freight rates for transporting Russian oil to India from the Baltic Sea's ports exceeded $20 per barrel, 10 times higher than costs to Europe in early 2022.
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