Monday, February 19, 2007
By Roman Kupchinsky
February 19, 2007 (RFE/RL) — In recent years, Russia’s state-controlled gas monopoly Gazprom has purchased oligarch Roman Abramovich’s oil major Sibneft and has forced the Royal Dutch Shell oil company into surrendering part of its ownership in the Sakhalin-2 project. But the gas giant wants more.
Gazprom recently announced that it plans to merge with a Russian coal supplier, the Siberian Coal Energy Company (SUEK). The merger, if approved by the federal antimonopoly watchdog, would create a holding company worth about $12 billion — by far the largest in Russia’s power sector — with Gazprom in majority control.
Gazprom already owns the largest power-generating company in Russia, Mosenergo.
Future Job For Putin?
The proposed merger seems geared to ensure greater centralization of energy resources in Gazprom’s hands and increase President Vladimir Putin’s hold on the Russian energy market. It is a move that could translate into a strong power base for Putin after he leaves the Kremlin in 2008.
Earlier this year, Putin proposed that Russia’s energy mix be changed and that coal be given a greater role. This makes sense, given that Gazprom is expected to struggle to meet domestic demand for gas as soon as 2008.
This latest struggle will do little to ease concerns in Europe about Russia’s role as a reliable energy supplier.
Russia has the second-largest coal reserves in the world. As Russia seeks new ways of meeting its growing demand for electricity, coal is the obvious option.
The “Kommersant” daily reported on February 15 that a new law is being prepared in the State Duma that would regulate the energy mix for “years to come” and lower the domestic use of gas.
Critics of Gazprom’s ambitions to move into the coal market say the move smacks of Soviet-style central planning and state capitalism.
Economic Development and Trade Minister German Gref said on February 16 that Gazprom’s proposed merger with SUEK was bad for competition. Analysts fear that, if the Gazprom-SUEK merger goes ahead, Gazprom will control top utilities as well as their suppliers.
Struggle For Power
Gazprom’s advance on the coal company comes as national utility Unified Energy System (EES) is broken up and sold to investors. Gazprom itself owns an 11 percent stake.
It is no secret that EES head Anatoly Chubais and the Kremlin have had differences since Putin was first elected. Chubais has been strongly critical of Gazprom’s expected inability to meet domestic gas demand. He has said that this will necessitate closing down a number of regional energy-generating enterprises and could lead to shutdowns and brownouts.
He has also said that the Kremlin-controlled Gazprom is squandering funds on nonessential activities, while neglecting development of new gas fields in Russia.
Moreover, Chubais’s strategy to liberalize the Russian power-generating market by selling off generating companies is not seen as being to the Kremlin’s liking.
Chubais has never been regarded by Putin’s team as an “insider.” He is seen as the last remaining member of the Yeltsin “family.” If he were forced out of EES and power generation switched over to Gazprom, inefficient as it might be, it would please the Kremlin no end.
This latest struggle in the energy sector will do little to ease concerns in Europe about Russia’s role as a reliable energy supplier. If Gazprom is forced to maintain supplies to its domestic clients, European consumers could feel the pinch.
In January, the global ratings agency Fitch issued a negative report about Russia’s power sector, describing it as a “very high-risk market,” mainly due to political uncertainty.
Radio Free Europe / Radio Liberty © 2007 RFE/RL, Inc. All Rights Reserved.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
sir,
hello, sir ,we from malaysia,company iringan oil & gas sdn bhd.sir,we want to buy oil d2 from russian company ,but ,we dont no with company we must deal.because avery day we sent e-mail to lukoil com,gazprom com,al-duke com,orison oil com,but nothing feedback.we hope you cant me to give me a reliable sourse company in russian.my e-mail [email protected]
thank you
mazree