Oil Transporting Joint Stock Company Transneft (Russian: Транснефть; traded as: MCX: TRNFP) is a Russian state-controlled the world’s largest pipeline company carrying out oil and petroleum product transportation in Russia and abroad. The length of the main «Transneft» oil pipeline system is about 70 000 kilometers. The company implements the transportation of 93% of oil produced in Russia. The raw materials export to various regions of the world is implemented through the oil- and petroleum product pipeline system, as well as through special ports of «Transneft» located on the coast of the Black Sea, Gulf of Finland and the Pacific Ocean. Transneft transports about 93% of the oil produced in Russia.
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.