
Gazprom is still the top Russian fuel & energy company. And it is the main company for Vladimir Putin, who remains the main player in the Russian politics and energy industry even though he has chosen to become prime minister.
Now that Putin has been replaced by the Kremlin’s controller of the gas monopoly, its chairman of the directors’ board Dmitry Medvedev, and Putin has promised to assume PM office, political environment does not seem to change much. Nevertheless, the corporation is facing serious objective challenges, from production issues to volatile relations with foreign partners. More especially as the turf war between the dominating Russian power clans is threatening to escalate with new force.
The new study draws results of Gazprom’s work under Putin the president and estimates future development of the main Russian company under Putin the prime minister and Medvedev the president.
It dwells on the following subjects:
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Possible reshuffle in Gazprom’s management structures
- Dmitry Medvedev’s departure from the board of directors and arrival of new players
- Arrival of Zubkov and his role
- The fate of Chief Executive Miller and his team
- Possible future relations with Putin’s Cabinet of Ministers
- Intertwining of clans’ interests in Gazprom
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Production challenges
- The threat of gas deficit
- Consequences of gas prices’ liberalization
- Transition to long-term contracts
- The fate of new projects
- The Eastern Program and the lack of a gas schema
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Transit challenges
- «Central Asian Cartel» formation
- Political crisis in Ukraine and risks for Gazprom.
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Corporation’s export strategy
- «Going West» instead of partnership with China
- Challenges of the energy dialogue between Russia and the USA
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Medium future projections
The contents of the report:
Introduction | 2 |
Chapter 1. Gazprom after the Presidential Election | 3 |
1.1. New Board of Directors and the Miller Team’s Destiny | 3 |
1.2. Administrative Competition with Rosneft Growing Fiercer | 7 |
1.3. Development Prospects for the Company’s Oil Business | 11 |
1.4. Outcomes of Gazprom’s Expansion into the Power Industry and Development Prospects for this Line of Business of the Monopoly | 12 |
1.5. Tax ‘Paradise’ for Gazprom | 14 |
Chapter 2. Production Issues for the Russian Gas Sector | 17 |
2.1. Difficulty Ensuring the Gas Balance in Russia | 17 |
2.2. Position of Independent Producers | 23 |
2.3. Liberalisation of Gas Prices and Gazprom’s Investment Plans | 24 |
Chapter 3. Gazprom in the Former Soviet Union. Difficulties Relating to Control of Gas Transit to Europe | 29 |
3.1. Overall Situation in the Former Soviet Republics’ Gas Markets | 29 |
3.2. Emergence of Central Asia Gas Cartel | 31 |
3.3. ‘Gas Wars’ with Ukraine | 35 |
3.4. Belarusian Front: So Far So Good | 39 |
Chapter 4. Gazprom Export Strategy. Prospects for Entering New Markets | 41 |
4.1. 1 Difficulties of Energy Dialogue with Europe. Prospects for an ‘Organisation of Gas Exporting Countries’ | 44 |
4.2. Nord and South Streams: A Clamp for Europe or Reliable Gas Supply? | 47 |
4.3 Struggle for North Africa | 50 |
4.4. Chinese Front | 51 |
Chapter 5. Forecast of Developments | 53 |
5.1. Hierarchy of Control over Gazprom | 53 |
5.2. Gazprom Development Strategy: From Acquisitions to Large-scale Investment in Production | 54 |
5.3. Acquisition Prospects | 55 |
Date of issue | May 12, 2008 |