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. Last Updated: 07/27/2016

Patrushev's Son Joins the Ranks of Rosneft

MTNikolai Patrushev
Federal Security Service director Nikolai Patrushev's 25-year-old son has been named an adviser to Rosneft chairman Igor Sechin, Kommersant reported Wednesday.

Andrei Patrushev is moving to Rosneft from a post as deputy director of the security agency's department that watches oil company activities, the newspaper said, citing an unidentified Rosneft official.

Rosneft and the Federal Security Service, or FSB, on Wednesday declined to confirm the appointment.

The move, if confirmed, would solidify control of Rosneft by the siloviki, the hawkish group of security and military officials close to President Vladimir Putin.

Sechin, deputy head of the Kremlin and a former KGB official believed to have played a key role in the legal attack on Yukos, was appointed to lead Rosneft's board in July 2004, despite having no experience in oil.

Rosneft stands as the country's second-largest oil producer, after its purchase of Yuganskneftegaz, formerly Yukos' largest production unit.

The company raised $10.4 billion from its initial public offering in July. The IPO was widely criticized as overvalued, and several investors and fund managers accused Rosneft of telling investors that they could buy the shares as a means of currying favor with the Kremlin.

Nearly 50 percent of the shares up for grabs were bought up by BP, Malaysia's Petronas, the China National Petroleum Corporation and a fourth unidentified buyer.

BP has acknowledged that its purchase was largely driven by a desire to cultivate better relations with the state, rather than to strengthen its portfolio.

The IPO became the country's largest and a symbol of the Kremlin's campaign to reassert state control over the strategic oil and gas sector.

Andrei Patrushev is not alone as the child of a powerful official joining the top ranks of Russian business.

Defense Minister Sergei Ivanov's son was appointed vice president of Gazprombank last year.

The son of St. Petersburg Governor Valentina Matviyenko works as a senior vice president at Vneshtorgbank.

Another employee of the state-owned banking giant is Dmitry Patrushev, Andrei's older brother, who oversees loans to oil companies, Kommersant said.