The Collapse of “Rosneft”’s Profitability Threatens Related Sectors of russia’s Economy

In the first nine months of 2025, PJSC “NK Rosneft” recorded a sharp decline in financial performance: net profit decreased by 70 % to just $3.51 billion, compared to $11.72 billion a year earlier. The company’s revenue declined by 17.8 %. At the same time, production volumes decreased: gas production – by 13.1 %, and oil refining – by 7.8 %.

The reasons for this deterioration were increased operating costs for anti-terrorism security, logistics, and maintenance, as well as the failure of about 20 % of russia’s refinery capacities in August–October.

Repair and restoration work and the optimization of plant loads were an additional burden. The high discount rate of the Central Bank of the rf increased debt servicing costs by $2.53–3.80 billion. The 20–25 % strengthening of the ruble since the beginning of the year has reduced foreign exchange earnings from exports, which account for more than 70% of the company’s revenue. The loss of access to Western technologies has led to the shutdown or reduction of production at technologically complex fields, including offshore projects and heavy oil varieties.

The decline in the company’s profits is not a sign of temporary fluctuations, but rather a structural deterioration in the russian oil and gas sector. “Rosneft” is forced to sell oil at a constant discount, which undermines its competitiveness.

In the medium term, this deterioration in the financial performance of one of the key enterprises of the russian economy will inevitably lead to a chain reaction of declining solvency in related industries—logistics, oilfield services, and machine building.