Trends of Vertical Integration in Russian Oil Companies: the Case of International Oil Refining Operations

Abstract

This work aims at understanding of current trends in vertical integration of Russian oil companies. The focus is made on international refining operations, particularly at determination of push motives and effects of entering in international refining activities. This research has applicable nature and is used to justify necessity of international strategy development in Gazprom Neft company. Multiple case study method that combines within-case analysis and cross-case analysis of three major oil companies in Russia is complemented by series of eight in-depth interviews with Gazprom Neft managers. Research findings underline expediency in international expansion of Russian oil majors in refining sector and generalize current trends of vertical integration that could be used by Russian oil industry players.