Impact of Sanctions: Oil Company Bankruptcies Emerge in Russia Amid Falling Prices…
Tighter U.S. sanctions have reportedly pushed Russian oil prices down to $40 per barrel and below, triggering a wave of bankruptcies among smaller oil producers in key regions of Russia.
The Russian state owned bank VTB Bank is preparing to file for bankruptcy against the oil group First Oil, which has accumulated approximately 6 billion rubles in debt and is unable to meet its obligations.
By late 2025, the oil company Yangpur representing the interests of Belarusneft in Russia and developing two fields in the Yamalo-Nenets Autonomous Okrug had also entered bankruptcy proceedings.
Earlier, Astrakhan Oil Company and the firm “Gorny,” which held three production licenses in the southern part of the Nenets Autonomous Okrug, were declared bankrupt as well.
The developments highlight mounting financial stress in Russia’s upstream sector as price pressure and restricted market access weigh on smaller operators.
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