Russia's Sechin out of Rosneft board

MOSCOW, April 12 (UPI) -- Russian Deputy Prime Minister Igor Sechin resigned as board chairman of Russian oil company Rosneft, the company announced.

Rosneft said Sechin is replaced by Alexander Nekipelov, vice president of the Russian Academy of Sciences, state-run news agency RIA Novosti reports.

His move follows orders by Russian President Dmitry Medvedev to have state officials pull out of executive positions at major institutions in an effort to increase competition.

Arkady Dvorkovich, an aide to Medvedev, said Russian Energy Minister Sergei Shmatko would have to give up his position on the board of directors of Gazprom as well.

He said Gazprom's board contains many high-profiled officials that need to go if the company is to follow the letter of the law.

Shmatko also holds a key position at Russian hydropower company RusHydro.

Medvedev said in late March that he wanted to see independent representatives take the place of state officials on company boards by the middle of the year.

"We have to eliminate the practice where government officials, I mean those responsible for regulating rules in individual sectors, are board members at companies which operate in the competition environment," he said.