21. Turkmenskaia iskra, December 6, 1977, 2; Literaturnaia gazeta, January 18, 1978, 10.
22. CIA Gas, July 1978, 2.
23. Marshall I. Goldman, USSR in Crisis (New York: W. W. Norton, 1983), 66.
24. Marshall I. Goldman, The Enigma of Soviet Petroleum, Half Full or Half Empty (London: George Allen & Unwin, 1980).
25. Goldman, USSR in Crisis, 136–38.
26. Goldman, USSR in Crisis, 144.
27. Yergin, 503.
28. MIG Soviet Foreign Aid (New York: Praeger, 1967), 97.
29. Moscow Narodny Bank Bulletin, February 4, 1971, 2.
30. Yergin, 50; Richard Matzke, “Russia and the USA: No Longer Rivals, Not Yet Partners,” Demokratizatsiya, 15, no. 4 (Fall 2007), 371.
31. Financial Times, November 27, 2006, 4.
32. Peter Schweizer, Victory (New York: Atlantic Monthly Press, 1994).
33. Schweizer, 219.
34. Schweizer, 242.
35. Yegor Gaidar, Gibel’ Imperii (Moscow: Rosspen, 2006), 224–31; Yegor Gaidar, “The Collapse of the Soviet Union: Lessons for Contemporary Russia,” seminar, American Enterprise Institute, Washington, D.C., November 13, 2006.
36. Gaidar, Gibel, 227.
37. Gaidar, Gibel, 286, 287, 328.
38. Graham Allison and Robert Blackwell, “America’s Stake in the Soviet Future,” Foreign Affairs, 70, no. 3 (Summer, 1991), 77–97.
39. Gaidar, Gibel, 270, 315, 337.
40. Gaidar, Gibel, 337.
41. Gaidar, Gibel, 244.
42. Schweizer, xii.
43. Gaidar, Gibel, 223, 310.
44. Gaidar, Gibel, 204, 213, 337.
Chapter 3
1. “The Unofficial Economy in Transition,” Brookings Papers on Economic Activity, no. 2, 1997, 159.
2. The Moscow Times, May 8, 2001.
3. Marshall Goldman, The Piratization of Russia: Russian Reform Goes Awry (New York: Routledge, 2003), 106.
4. Goldman, The Piratization of Russia, 117.
5. Nina Poussenkova, “Rosneft as a Mirror of Russia’s Evolution,” Pro et Contra Journal, 10, no. 2 (June 2006), 11.
6. Washington Post, August 22, 2001; Chrystia Freeland, Sale of the Century (Toronto: Doubleday, 2000), 175.
7. Goldman, The Piratization of Russia, 150; Moscow Times, April 4, 2000; Moscow News, June 28, 1999, 2.
8. Moscow Times, April 11, 2000; Goldman, The Piratization of Russia, 151.
9. Moscow Times, April 25, 2006.
10. Goldman, The Piratization of Russia, p.143.
11. Interview, December 8, 2000.
12. Goldman, The Piratization of Russia, 126.
13. Goldman, The Piratization of Russia, 119.
14. New York Times, November 21, 2006, C11.
15. Observer, January 8, 2006, Business section, 1.
16. U.S. Court of Appeals for the Second Circuit, August Term, 2004, Docket No. 04–1357-cv, 8–9.
17. Goldman, The Piratization of Russia, 144.
18. Wall Street Journal, March 24, 2007, A3; Business Week, April 19, 2007; Financial Times, March 24, 2007, 9.
19. Wall Street Journal, September 15, 2006; Russian Analytical Digest, August 2006, 11.
20. New York Times, November, 24, 2002, F1.
Chapter 4
1. Marshall Goldman, “Russia’s Bleeding Heartland,” Central European Economic Review, September 1997, 6.
2. Anders Aslund, How Russia Became a Market Economy (Washington: Brookings, 1995); Richard Layard and John Parker, The Coming Russian Boom (New York: Free Press, 1996).
3. Boston Globe, October 28, 1998, A8.
4. Financial Times, July 17, 2003, 14.
5. Wall Street Journal, October 23, 1998, A3.
6. Grace, 80, 83.
7. Wall Street Journal, May 24, 2006, A6.
8. Zhou Dadi, “Sustainable Energy Development in China: Challenge and Opportunities,” March 21, 2007, mimeograph, 1.
9. Financial Times, May 2, 2007, 10.
10. Dadi, 1.
11. Financial Times, July 4, 2006, 3
12. Dadi, 2: ITAR TASS, December 6, 2006.
13. China Daily, September 18, 2007, 1; Financial Times, November 30, 2007, 4.
14. Financial Times, July 19, 2007, 7.
15. Wall Street Journal, October 7, 2006.
16. Grace, 166; Mikhail Khodorkovsky, Presentation to German Electricity Association Congress, 2000, at www.yukos.com/exclusive/exclusive.asp?ID=6085.
17. David Johnson’s Russia List, January 2, 2007, No. 1, Items 6, 7.
18. Moscow Times, September 7, 2006, 7; Prime-TASS, September 1, 2006.
19. Moscow Times, August 26, 2006; Financial Times, June 17, 2006, 1.
20. Rodnaya Gazeta, no. 38, October 5, 2006; Moscow Times, September 7, 2006; August 25, 2006.
21. “The Russian Economy,” World Bank, April, 2006, Moscow Office, 9.
22. Financial Times, July 26, 2006, 21.
23. Wall Street Journal, January 22, 2007, A1.
24. Gazprom in Questions and Answers (Moscow: Gazprom, 2006), 6.
25. David Johnson’s Russia List, January 2, 2003, 11.
26. Moscow Times, December 5, 2000; New York Times, November 24, 2002, 4; Moscow News, June 8, 2005, 9.
27. International Herald Tribune, July 24, 2004.
28. New York Times, November 24, 2002, F1; Moscow Times, September 24, 1997; Financial Times, September 1, 1994, 2.
29. Russian Journal, November 29, 1999.
30. Wall Street Journal, September 1, 1994, A6.
31. Annual Arden House Seminar, Liz Williamson, Conoco, March 18, 1995.
32. Moscow Times, December 5, 2000; Houston Chronicle, December 30, 2004.
33. Discussion with senior ConocoPhillips executives, September 10, 2003.
34. Initially, in September 2004 it bid $2 billion to buy the 7.5 percent of LUKoil’s share held by the government. By March 2005 it had acquired 11.3 percent; three months later, 12.6 percent; and by December 3, 2005, it owned 16.1 percent. It purchased the remaining 3.9 percent in 2006 for $3 billion, for combined expenditures of over $7.5 billion. New York Times, June 3, 2005, C4; Prime-TASS, October 3, 2006.
35. Moscow Times, August 30, 2004, 5.
36. New York Times, October 28, 2004, C8.
37. David Johnson’s Russia List, June 5, 2007, no. 127, 135.
38. New York Times, December 1, 2005, C1, 8.
39. Moscow Times, October 4, 2006; Vedomosti, October 24, 2005; David Johnson’s Russia List, October 25, 2005, 9277, item #9.
40. FC Novosti, Ia, October 10, 2007, 12:22; Financial Times, October 11, 2007, 2.
41. Wall Street Journal, January 30, 2007, A3.
42. Asian Wall Street Journal, November 8, 2006, 4.
43. Insight TNK-BP International News Letter, Autumn 2006, 2.
44. Financial Times, July 4, 2006, 3.
45. Financial Times, September 12, 2006, 15; October 12, 2006, 8.
46. Wall Street Journal, January 25, 2007, A12; International Energy Agency Outlook, 2006.
47. Financial Times, October 16, 2006, 13.
48. Bernard A. Gelb, “Russian Oil and Gas Challenges,” CRS Report for Congress, Library of Congress, Washington, January 3, 2006, CRS 2; Taken from BP Statistical Review of World Energy, 2005 and 2006, 6; Oil and Gas Journal, December 2004. John Grace estimates the Russians have proven reserves of 68.2 billion barrels. Grace, 179.
49. Wall Street Journal, September 30, 2004, A1; New York Times, October 28, 2004, C8.
50. New York Times, October 28, 2004, C8.
51. The careful geologist John Grace tends to be considerably more skeptical. Grace, 216.
52. Prime-TASS Business Newswire, April 26, 2007; Financial Times, April 25, 2007, 176 Moscow Times, August 13, 2007.
53. Jonathan P. Stern, The Future of Russian Gas and Gazprom (Oxford: Oxford University Press, 2005), 144.
Chapter 5
1. For a more thorough discussion as well as a translation of
an article Putin wrote on this theme, see Harley Balzer, “Vladimir Putin’s Academic Writings and Russian Natural Resource Policy,” Problems of Post-Communism (January/February 2006), 48–54. See also Robert Price, “Putin’s National Champions: Domestic and International Implications,” Master’s Thesis, Harvard University, August 2007, 6–8.
2. Balzer, 51.
3. Balzer, 52.
4. Balzer, 53.
5. Balzer, 54.
6. Washington Times, March 31, 2006; Pittsburgh Tribune Review, March 28, 2006.
7. Kommersant, April 6, 2006.
8. Financial Times, May 4, 2007, 18.
9. Stern, 170.
10. Stern, 170.
11. Stern, 170.
12. Interview with Boris Berezovsky, October 22, 2003, London.
13. Grace, 171.
14. Grace, 120; Moscow News, March 24, 2004, 9.
15. Financial Times, December 20, 1999, 11. Not by any means unique to Yukos, transfer pricing was a widely used practice among Russian oil companies, including Rosneft, the state-owned company that was to be the main beneficiary of Yukos’s collapse. Kommersant, February 6, 2007, 1.
16. Prime-TASS, March 6, 2006.
17. Moscow Times, April 25, 2006; July 24, 2004; August 7, 2007; BBC, July 26, 1998; Financial Times, July 27, 2004, 1, 9; Times of London, August 9, 2004; Independent, July 27, 2004, 22.
18. Moscow Times, April 25, 2006.
19. Moscow Times, April 25, 2006.
20. Wall Street Journal, August 26, 1999, A1; September 3, 1999, 2; Moskovskaia Pravda, December 17, 1994, 5.
21. Moscow Times, January 21, 2002.
22. Grace, 121.
23. Seminar, John Pappalardo, lawyer for Khodorkovsky, October 25, 2005; Wall Street Journal, April 27, 2004, A1.
24. Moscow Times, October 25, 2006.
25. Wall Street Journal, April 27, 2004, A12.
26. Wall Street Journal, April 27, 2004, A12.
27. Wall Street Journal, April 12, 2004, A12.
28. New York Times, February 11, 2007, A4.
29. Nina Poussenkova, Pro et Contra Journal, 10, no. 2 (June 2006).
30. Bruce Bean, “Russia’s Yukos Affair: The Use and Abuse of Law,” photocopied 2005, 5.
31. Financial Times, November 9, 2005, 16.
32. Financial Times, November 9, 2005, 16; Vedomosti, February 20, 2003.
33. Interview at Davis Center, Harvard University, December 6, 2004.
34. Kompromat.ru, July 4, 2003.
35. Moscow News, March 3, 2004, 3; March 24, 2004, 9.
36. Moscow Times, July 15, 2003.
37. Seminar, Davis Center, October 25, 2005.
38. Moscow Times, February 27, 2007.
39. Kommersant, April 25, 2006.
40. Mikhail Khordorkovsky, “What Is the Morality Tale?” Panel Discussion at the University of Pennsylvania Law School, December 7, 2006.
41. Seminar, Davis Center, Harvard University, October 25, 2005; Panel Discussion, University of Pennsylvania Law School, December 7, 2006.
42. Moscow Times, February 27, 2007.
43. Financial Times, March 26, 2007, 16; Kommersant, February 6, 2007, 1.
44. New York Times, March 17, 2007, A3.
45. Moscow Times, April 5, 2007.
46. Prime-TASS, February 15, 2007.
47. Moscow Times, February 15, 2007; Wall Street Journal, February 22, 2007, A4.
48. Wall Street Journal, February 22, 2007, A4.
49. Financial Times, March 26, 2007, 16; August 20, 2007; Moscow Times, July 23, 2007, A4.
50. Moscow Times, March 28, 2007; New York Times, March 28, 2007, C3.
51. New York Times, March 27, 2007, A3; March 28, 2007, C3; Wall Street Journal, March 28, 2007, A10.
52. Moscow Times, March 28, 2007.
53. Moscow Times, March 28, 2007.
54. Wall Street Journal July 12, 2007, A7; Financial Times, January 29, 2008, 18.
55. Moscow Times, February 27, 2007.
56. Financial Times, March 12, 2004.
57. Financial Times, October, 11, 2005, 5; Washington Post, March 4, 2004.
58. Financial Times, October 11, 2005, 5.
59. Independent, June 18, 2004, 1.
60. Wall Street Journal, July 31, 2007, A2.
61. Moscow Times, August 1, 2007.
62. Moscow Times, March 7, 2006.
63. Financial Times, November 4, 1998, 2; Moscow Times, April 30, 2004; July 21, 2006; Grace, 136.
64. New York Times, July 3, 2004, B1.
65. Phone conversation with Jeff Larson of Sowood Capital, agent for the Harvard Management Company, February 28, 2007.
66. Business Week, October 23, 2006, 52.
67. Grace, 142.
68. Financial Times, March 22, 2007, 18.
69. Wall Street Journal, March 24, 2007, A3; Financial Times, March 24, 2007, 1.
70. Moscow Times, October 16, 2006; February 27, 2007. They have also been accused of pollution and the alleged cutting of trees while building pipelines.
71. Financial Times, February 28, 2007, 21; Moscow Times, March 1, 2007.
72. New York Times, October 6, 2006, C4.
73. Wall Street Journal, September 22, 2006, A6; Financial Times, September 22, 2006, 2.
74. Financial Times, April 20, 2007, 4: Moscow Times, June 9, 2007, 6.
75. Financial Times, September 22, 2006, 2; Fiona Hill and Florence Fee, “Fueling the Future: The Prospects for Russian Oil and Gas,” Demokratizatsiya (Fall 2002), 481.
76. Prime-TASS, March 1, 2007; Moscow Times, June 22, 2007.
77. Moscow Times, March 1, 2007; February 27, 2002.
78. Financial Times, February 28, 2007, 21; March 22, 2007, 18.
79. Forbes.com, August 23, 2007, 11:50 a.m.
80. Grace, 194.
81. Moscow Times, February 27, 2007.
82. Moscow Times, March 23, 2007.
83. Financial Times, September 22, 2004, 21; August 5, 2005, 14.
84. Yergin, 456, 583.
Chapter 6
1. Yergin, 742–43.
2. Yergin, 742–43; Stern, 215.
3. Yergin, 743.
4. Yergin, 743.
5. Balzer, 48.
6. Bernard A. Gelb, “Russian Oil and Gas Challenges,” Congressional Research Service Report for Congress, Library of Congress, January 3, 2006; Sunday Times, July 9, 2006, 24; BP Statistical Review of World Energy, 2006, 22; Gazprom in Questions and Answers, 20.
7. BP Statistical Review.
8. Financial Times, May 16, 1997, 3; May 22, 1997, 18; May 27, 1997, 1; Russia Review, July 2, 1997, 23.
9. See Introduction.
10. Moscow Times, May 29, 2001.
11. Interview, June 21, 2001.
12. Moscow Times, March 13, 2007; New York Times, July 13, 2006, 10; Stern, 106.
13. Moscow Times, March 13, 2007.
14. Moscow Times, May 26, 2006.
15. President Putin’s State of the Nation Speech to Duma, May 10, 2006.
16. Valdai Hills Discussion Group, September 4, 2006.
17. Gazpromistan was coined by Edward Lucas, a writer for The Economist.
18. Prime-TASS, March 1, 2007.
19. Financial Times, July 14, 2006, 9.
20. Financial Times, April 28, 2006, 2.
21. Financial Times, July 14, 2006, 9.
22. Novaia Gazeta, August 21, 2006; Kompromat.ru, “Samikh Bogatikh na Gaze”; Financial Times, April 27, 2006, 2; April 28, 2006, 2.
Petrostate:Putin, Power, and the New Russia Page 28
