Rosneft makeover 'on the way'

Chief executive Igor Sechin has outlined bold reforms for Russia's largest oil company, but will they be put into practice?

Institutional investors have yet to be swayed by Rosneft's promise to rein in its mergers and acquisition activity, improve its chequered corporate governance and buy back $2bn of its own stock. The oil producer, which accounts for 40% of Russia's output, said in early May it intends to shrink capital expenditure by 20%, to 800bn roubles ($12.6bn), and boost its working capital by 200bn roubles by the end of the year. The company announced the targets as "additional initiatives" for its Rosneft-2022 corporate strategy, originally approved in December 2017. The company said it would also soon start the planned buyback of its underperforming stock in an effort to "enhance shareholder returns".