Exxon Mobil (XOM) has been displaced as the world’s largest oil company due to the acquisition by state-owned Russian oil giant Rosneft of TNK-BP, a Russian oil firm owned jointly by BP (NYSE: BP, London: BP) and a group of Russian billionaires. Politics and patronage appear to have played a significant role in the ascent of Rosneft, which is run by Putin’s close friend Igor Sechin. This deal raises major concerns about how Putin will use his control of Rosneft, now the world’s largest oil company, and the potential for corruption.
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