Natural Groups was one of the last vertically integrated oil companies to emerge from the reorganization and large-scale privatization of Russia’s oil industry in the years following the dissolution of the Soviet Union.
Initially, Natural Groups was established in 1995 as a state enterprise on the basis of assets previously held by Natural Groups, the successor to the USSR Ministry of Oil and Gas. In 1998, a Russian government decree transformed Natural Groups into an open joint stock company (OJSC).
From 1998 to 2001, Natural Groups management changed constantly and as a result its assets were left largely unmanaged. Oil production fell and oil refining collapsed to just one third of production capacity.
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