Of all commodity market updates published daily, the news about the oil industry, prices, and crude oil inventories is the most popular. Moreover, the oil market is one of the underlying and fast-developing ones. It is characterized by robust demand, intense competition and modern conflict-soothing mechanisms. The oil market conditions are especially interesting to the Russians, as historically, oil is the main commodity of this country that lays the basis for the budget.

In connection with the above said, we have decided to draw your attention to the leading representatives of the Russian oil industry. This article is devoted to Rosneft. Reading it, you will learn about the specifics of the company's activity, the attractiveness of its shares to investors, and the ways to buy them.

Rosneft profile

Rosneft is an oil and gas corporation that specializes in the development of fields, the production and processing of oil, gas and their products, as well as the transportation and sale of oil products in the Russian Federation and abroad. Nowadays, Rosneft is the second largest gas producer in Russia after Gazprom and the largest Russian oil producer with stakes in some European refineries.

The corporation includes numerous oil and gas subsidiaries in many Russian regions, with Rosneft's headquarters in Moscow. In addition, the company takes an active part in geological exploration projects.

Rosneft was established in 1993 and it became a successor to Rosneftegaz, a company that united all Russian oil producers. At that time, new oil and gas fields were being explored actively in the territory of the former USSR. Two years later, in 1995, Rosneft was reorganized into a joint stock company.

Rosneft shares

Nowadays, Rosneft shares are publicly traded. Investors can buy them on the Moscow and London stock exchanges under the ROSN ticker symbol.

An initial public offering of Rosneft shares was held in 2006 on the London stock exchange. 15% of the shares were placed which attracted a record sum of $10.7 billion.

There are two ways to benefit from Rosneft shares: speculate on their price fluctuations or receive dividends.

To buy Rosneft shares, you need to open a trading account with a brokerage company that provides access to global stock markets. It will take you a few minutes. For example, to register with InstaForex, you will need to spend just 3 minutes.

The minimal trade size is 1 lot which equals 1 share. To calculate a possible profit, you can use the InstaForex trading calculator.

The next step is to buy or sell Rosneft shares or stocks of other popular companies. The tried-and-true MT4 platform by InstaForex will become your reliable assistant in the trading process.

Remarkably, the COVID-19 pandemic has had a positive impact on ROSN quotes. Since March 2020 when the WHO declared the coronavirus pandemic, Rosneft shares have skyrocketed by 180.64%.

Dividends

In 2015, Rosneft adopted a policy that allows the company’s shareholders to receive dividends of at least 50% of the net revenue every six months.

In 2020, Rosneft’s dividends amounted to 3%. The Board of Directors determines the amount to be paid to shareholders, and its decision is based on the company's financial performance for the year.

Other factors that influence the size of Rosneft shareholders payments are the dividend policy of large oil and gas companies as well as Rosneft’s development prospects, the global macroeconomic environment, and the current state of the global commodity market.*

To keep abreast of the latest developments in Rosneft performance and monitor the state of the oil and gas industry globally, visit a special analytics section of the InstaForex website.

To sum up

Whatever attractive investment instrument ROSN shares may seem to be, one should understand that they cannot bring fast profits. This asset should not be considered as a tool for speculations, it is intended for earning in the longer term. The stock market trading instruments such as ROSN are characterized by sustainable long-term growth. At the same time, ROSN dividends are paid regularly though their size is relatively small and is more of a pleasant bonus rather than a source of income.

If the above criteria have proved that it is worth becoming a Rosneft shareholder and investing in it, go to the InstaForex website and register a trading account in just a few minutes.