Pipeline transport monopoly expects 10% revenue drop

Vladimir Putin had a meeting with Nikolai Tokarev, Chairman of the Management Board and President of state-controlled Transneft which transports oil and oil products via the trunk pipelines system, to discuss the company’s performance in 2019 and its development plans, the Kremlin reports.

According to Tokarev, “the company has 117K employees, and pays corporate pensions to 30K retirees; it improved all of its basic key manufacturing and economic indicators in 2019 compared to 2018, and had positive momentum in its performance. Its cargo turnover increased by 2.5%, oil deliveries into the Transneft system were up 1.5%, tax payments were 14% higher. Russia’s oil exports increased by 4% in 2019.” Yet due to the pandemic, “revenue and freight turnover are expected to drop by about 10%.” “Transneft currently focuses on modernizing, rebuilding and overhauling its existing infrastructure,” he said, “since about 40% of the existing networks have reached the limits of their operational capacity and mechanical and technological equipment, energy supplies and linear sections of oil pipelines need to be replaced.”

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