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Russia: The Fox Guarding the Henhouse: Gazprom Deploys Rotenberg to Deter Novatek

On 24 May Gazprom Deputy CEO Vitaliy Markelov ruled out a partnership between Gazprom and Novatek to develop the Tambei group of fields. Gazprom controls several major gas fields in the cluster, which is located in the northeast of the Yamal peninsula and includes North-Tambeiskoye, West-Tambeiskoye, Malyginskoye and Tasiyskoye. In early May, Gazprom CEO Aleksei

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Russia: Dividend Squeeze: State-Owned Companies Defund the Government

At a press briefing during his visit to China on 15 May, Putin addressed the issue of dividend payments by state-owned firms. Last year, the government set these dividends at the rate of at least 50% of the firms’ net incomes. They can be calculated in accordance with the International Accounting Standards (IAS) or Russian

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Russia: Gazprom: Financial Dark Clouds, But Bright Political Outlook

Gazprom’s 2016 financial results reported last week have received positive media coverage, with the monopoly’s 20% increase in net profits making headlines. The picture behind the profit numbers, however, is not as rosy. As much as half of the profits is attributed to foreign exchange gains caused by the rouble’s appreciation in 2016. In the

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Russia: Gazprom’s 2017 Outlook: Financial Poverty, Political Strength

Gazprom is finishing 2016 with one of the weakest financial results in recent years. The company’s CFO, Andrei Kruglov, recently suggested that the monopoly’s EBITDA may drop over 30% in dollar terms. We expect Gazprom’s EBITDA to reach about $19bn this year, compared to about $30bn in 2015 and $51bn in 2013. Kruglov has also

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Russia: Resuscitating South Stream: Gazprom Signs a New MOU

On 24 February Gazprom CEO Aleksei Miller signed an MOU with the CEOs of Edison and DEPA to build a subsea pipeline across the Black Sea to deliver Russian gas to Greece and on to Italy. According to Gazprom’s statement, gas will be transported to Greece via “third countries” and “maximum use” will be made

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Russia: Bashneft’s Privatization: Who Are the Potential Buyers?

Senior government officials have recently confirmed that Bashneft will be the first major company to be privatized in 2016. The Russian government currently controls a 50.08% stake in Bashneft; Bashkortostan’s regional administration holds a 25% stake; about 5% of the company is held as treasury shares; and institutional and individual private investors hold the rest.

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Russia: Bridging the Gap: Rosneft Seeks to Acquire Purgaz

According to recent reports following a meeting between Igor Sechin and Aleksei Miller on 27 January, Rosneft will acquire full control over Purgaz in the coming weeks. Purgaz operates the Gubkinskoye field in the Yamal-Nenets region, and its ownership is currently split between Gazprom (51%) and Rosneft (49%). The subsidiary’s output has gradually declined in

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Russia: Gazprom’s Setbacks and Rosneft’s Attacks Will Not Threaten Miller

Gazprom has experienced a string of high-profile setbacks in recent weeks. The monopoly’s negotiations with China and Turkey over two major pipelines, Altai and Turkish Stream, have hit roadblocks. Gazprom’s output declined 13% in the first half of 2015 to reach 205 bcm, with its revenues dropping in line with falling production and prices. In

Russia - 01

Russia: Turkish Stream: Protracted Bargaining at the Kremlin’s Expense

Over the last few days, President Vladimir Putin, Gazprom CEO Aleksei Miller and senior Kremlin and Gazprom officials have focused renewed attention on the Turkish Stream project. Feverish activity around the project began with Putin’s meeting with Turkish President Recep Tayyip Erdogan in Baku on 13 June. There, Putin was unable to extract a final