Russia’s Strategy Unfolding: Asia, Greece, and JKX Oil & Gas

At a moment when Western oil majors struggle to achieve reassuring reserve replacement ratios, Russia is capitalising on competitors’ difficulties to maintain or even increase its clout in European and global markets, through a mix of changes in its financial strategy and a strong attention on the upstream. 

Moscow-based Proxima Capital Group announced it might soon consider a potential offer for Ukraine-focused JKX Oil & Gas.The company, which announced last month it would withdraw from Ukraine, is listed on the London Stock Exchange. Its shares jumped 54% after the message from the Russian investment company.

Meanwhile, Moscow is also paying close attention to European problems. 

The President of Russia Vladimir Putin had a telephone conversation with Greece’s Prime Minister Alexis Tsipras. According to a note released by the Kremlin, they spoke about international issues and gas projects.

‘The discussion covered a number of international issues, including the situation in Ukraine and the circumstances around the South Stream and the Turkish Stream projects’ reads the note.  

According to reports, Tsipras might go to Moscow in May. Athens hope to find a temporary solution with European institutions, proposing a bridging program until the end of May to allow for debt talks.  

But that is not all. Gazprom is also juggling well in the current situation. It held its Investor Day for the first time in the Asia-Pacific Region in Hong Kong, further proving its interest to switch focus from Europe to Asia - and not only to sell its resources. 

‘At present the Company is considering the possibility of getting a listing at the Hong Kong Exchange where the securities of such petroleum majors as PetroChina, Sinopec and CNOOC are traded’ reads a note released by the company led by Alexey Miller and Alexander Medvedev.

Sergio Matalucci 

Sergio Matalucci is an Associate Partner at Natural Gas Europe. Follow him on Twitter: @SergioMatalucci