Transneft (Russian: Транснефть; traded as: MCX: TRNFP) is a Russian state-controlled business responsible for the national oil pipelines. It was founded in 1993 and owns the largest oil pipeline system in the world, with a total network length of almost 50,000 kilometres (31,000 mi). Transneft transports about 93% of the oil produced in Russia. The company is headquartered in Moscow and led by Nikolay Tokarev.
Transneft was established in accordance with Presidential Decree №1403 dated 17 November 1992 and Russian Government Resolution №810 dated 14 August 1993, and is the legal successor to the USSR Ministry of Oil Industry Main Production Department for Oil Transportation and Supplies (Glavtransneft), with 100% of shares belonging to the state. On 16 April 2007, Transnefteproduct, a company concerned with the transportation of refined oil products, was merged into Transneft.
Documents submitted by Transneft to the Russian Audit Chamber in 2008 were found at the disposal of Alexey Navalny, minority shareholder of Transneft JSC. The papers, published on 16 November 2010, contain information regarding multiple economic crimes committed by Transeft employees, its daughter structures and contractors in the construction of the Eastern Siberia – Pacific Ocean oil pipeline. The documents described Transneft executives’ setting up a series of shell companies to pose as contractors for Transneft’s pipeline project.
Navalny posted an audit indicating that the contracting fraud had cost Transneft $4 billion. Both Transneft and the government auditing office, whose documents Navalny said he leaked on his site, denied the corruption claim. Prime Minister Vladimir Putin called for an investigation into the allegations.
All facts of theft and fraud are confirmed by the company management. The reports that recorded the breaches were endorsed by the officials.