Thursday, December 21, 2006

Gazprom is the ExxonMobile of Russia

Gazprom (Wikipedia) is Russia's super oil and gas company. It is the biggest extractor of natural gas in the world. Other similar companies in Russia include Rosneft, Transneft, the state oil pipeline monopoly and Yukos (dismantled since filing bankruptcy). The politics around this company are complex, but it is currently state controlled.

A big controversy right now is Gazprom's insistence that Shell include it as a partner in the Sakhalin II, a joint project between Shell and Japanese companies (Wikipedia). ExxonMobile's Sakhalin I (Wikipedia) project is also being forced into partnerships with Gazprom. Russia is using environmental regulations as a way to force negotiated partnerships and increased tax revenues.

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