Russia comprises of a mixed economy with state ownership in particular sectors of the economy. The country boasts of an upper-middle income. During the 1990s, a big portion of Russia’s agricultural and industrial sectors were privatized as a result of market reforms. However, there were significant exceptions to the privatization of certain industries such as the defense-related and energy sectors. The country's colossal geography is an important determinant of its economic activity as most sources estimate that Russia comprises of more than 30% of the natural resources in the world. Russia's natural resources are estimated to be worth around $75 trillion by the World Bank. The country has abundant deposits of precious metals, natural gas, and oil. Below are the top three largest companies in Russia, Gazprom, Lukoil, and Rosneft; all three are oil and gas companies.
Founded in 1989, Gazprom is the largest company in Russia with revenues of $97.6 billion. The company is headquartered in Moscow and is responsible for the extraction, production, transportation, and selling of natural gas. The company's name is a Russian word which stands for Gazovaya Promyshlennost meaning gas industry. Despite Gazprom being a private company, the government of Russia is the majority stakeholder. The company is also involved in the diplomatic efforts of the Russian government including access to pipelines and setting off gas prices. Gazprom has been making plans to mine the Yamal Peninsula, but its main production fields are situated in Western Siberia around the Gulf of Ob. The company's gas transport system comprises of 98,242 miles of gas trunk lines. Gazprom holds majority stakes in other companies and has subsidiaries in the industrial sectors of media, aviation, and finance.
With $84.4 billion in revenues, Lukoil is the second largest company in Russia and one of the largest oil companies in the country. The company whose headquarters are in Moscow produced about 1.813 million barrels of oil per day in 2012, making it one of the largest producers of oil in the world. Regarding gas reserves and proven oil, the company is among the world's largest public companies alongside ExxonMobil. Lukoil had a total of 19.3 billion barrels of oil in 2008 per SPE requirements which was equivalent to 1.3% of global oil reserves. Lukoil operates in over 40 countries around the world.
Rosneft is a company that deals with the exploration and production of gas and oil in southern Russia, Siberia, Chechnya, Sakhalin Island, and the Timan-Pechora field. Rosneft has its headquarters in Moscow and is the third largest company in Russia with revenues of $67.2 billion. The majority of the company is owned by the government of Russia whose share accounts for 75.16%, BP owns 19.75%, and 5% is in free float. Rosneft operates and owns two refineries, one on the Black Sea in Tuapse and the other in Komsomolsk-on-Amur. With $64.75 billion in sales, Rosneft became the world's 51st largest company as of 2016. An undisclosed buyer purchased 19.5% of Rosneft on December 7, 2016.
Other Large Companies In Russia By Revenue
Of the 20 largest companies in Russia, 14 are headquartered in Moscow while the other 6 are located in regions of Russia. Six of the 20 companies deal with oil and gas, two with banking, two with retailing, two with utilities, two with metallurgy, and another two with transport. The remaining companies deal with engineering, telecommunications, and distribution.