The bankruptcy of 'First Oil Group', a company formerly associated with SIBUR's Jakov Goldovskij, highlights the financial turmoil faced by Russian oil firms following sanctions and falling prices.
The 'First Oil Group', an enterprise previously linked to Jakov Goldovskij, a former shareholder of SIBUR, is facing bankruptcy proceedings initiated by the state-owned VTB bank. Based in the Khanty-Mansi Autonomous Okrug, a critical region for oil production in Russia, the company has accumulated debts nearing 6 billion rubles, which it is unable to repay. The company's asset situation includes several minor fields with a total of 14 million tons of reserves but an annual production rate of merely 500,000 tons. The ongoing financial strain became more acute during the pandemic, and recent sanctions from the United States have forced oil companies to sell crude oil at discounts of up to $30 per barrel, exacerbating the financial challenges for 'First Oil'.
