“He is one of Vladimir Putin’s most trusted and closest advisors” states the 2022/336 regulation of the European Council as one of the reasons for its sanctions on the CEO and Chairman of Rosneft (Russia’s partially state-owned, largest oil company) Igor Sechin. Indeed, Sechin’s position of influence within the Russian political and business spheres and his personal relationship with Putin did result in all his funds in the EU being frozen less than two weeks after the breakout of the Russia-Ukraine war.

Nonetheless, he is still said to be amongst the richest and most powerful Russian elites. The origins of his wealth are, however, quite unclear. Forbes estimates that Sechin’s $800 million net worth (before sanctions) comes from not only leading Rosneft and holding seats on the boards of numerous other companies but also owning 0.12% of the oil giant worth $77 million and two of the world’s most valuable yachts. It has also been suggested that Sechin’s money is coming from taking a cut from Rosneft’s cash flow and trade deals as well as from purchasing lands and properties through his children.

According to his publicly available biography Igor Sechin, who holds a PhD in Economics from Russia’s Leningrad State University, and began his career as an army translator, started to be involved with large-scale politics in the early 2000s when he was the Deputy Head of the Executive Office of the President of the Russian Federation and Aide to the President of the Russian Federation. Then, under the Medvedev presidency, Sechin was made Deputy Prime Minister due to his established close ties with Putin, who was Prime Minister at the time. In 2012, when Putin assumed the presidency again, however, Sechin kept his distance from politics. Putin had another role in mind for Sechin that was strategically much more crucial. The by-then personal friend of the new president was appointed as the CEO and Chairman of Rosneft, a position he has been holding ever since, both pre-war and post-war.

The Sechin-Putin relationship has to an extent facilitated the achievement of some of Putin’s long-term energy strategy plans and geopolitical aims. Out of those, the involvement of the Russian state in the economy and energy industry was strengthened, when through Rostneftegaz (a 100% state-owned holding company), the state owned at first 75 per cent, then 50% and now 40% of the oil company. With that even up to today, the state not only has a high level of control in the dealings of Rosneft but – according to The Guardian’s 2020 data – also receives an annual $26 billion in taxes.

Since the oil that Rosneft sells to other states is a crucial geopolitical tool for Putin, Sechin’s appointment as CEO in 2012 seems to be a well-paid-off strategic decision. He is not only a loyal personal friend whom Putin “trusts […] more than anyone else”, but also just like the president, is said to be determined to restore the state’s role in the Russian energy and economy sectors. Probably for that reason when Rosneft took over TNK-BP, the third largest oil company in Russia, it was not long until Sechin appeared as CEO.

Overall, the relationship between Putin and Sechin is the ultimate, unequivocal manifestation of the large-scale politics-business interconnectedness in Russia. “He is one of the Russian oligarchs operating in partnership with the Russian state” adds the 2022/336 regulation of the European Council to the reasons for the sanctions imposed on him. Whether these personal sanctions on Igor Sechin will considerably affect him or his position is yet to be seen. However, as long as he is in control of the largest public oil production company in the world, Putin will have a trusted ally looking over not only the export of, but also, more importantly, the income from Russia’s worldwide-famous oil.