23. Financial Times, April 28, 2006, 2.
24. Wall Street Journal, April 21, 2006, A6; September 22, 2006, 4.
25. Wall Street Journal, September 22, 2006, A4.
26. Wall Street Journal, September 22, 2006, A4.
27. Moscow Times, April 24, 2007.
28. Moscow Times, October 4, 2006.
29. Moscow Times, October 4, 2006.
30. Wall Street Journal, December 23, 2006, A4; Financial Times, December 23, 2006, 2.
31. Moscow Times, March 1, 2007. Seminar, Davis Center, December 8, 2006, Zurab Noghaideli, Prime Minister of Georgia.
32. Moscow Times, March 20, 2007; Eurasia Daily Monitor, Jamestown Foundation 4, no. 97 (May 17, 2007), 2.
33. Financial Times, February 28, 2007, 8.
34. Financial Times, December 14, 2006, 1.
35. BBC Monitoring, January 4, 2007, 13:00–1.
36. New York Times, January 13, 2007, A4.
37. Financial Times, August 3, 2007, 1.
38. Financial Times, December 14, 2006, 1; Rossiiskaia gazeta, May 21, 2007, 1.
39. Eurasia Daily Monitor, Jamestown Foundation 3, no. 57 (March 23, 2006), 4; Eurasia Daily Monitor, Jamestown Foundation 3, no. 190 (October 16, 2006), 1.
40. Financial Times, May 4, 2006.
41. New Europe, August 2, 2006.
42. New Europe, April 25, 2007.
43. Financial Times, December 14, 2006, 3.
44. Wall Street Journal, December 4, 2006, A6.
45. Eurasia Daily Monitor, Jamestown Foundation 4, no. 140 (July 19, 2007).
46. Eurasia Daily Monitor, Jamestown Foundation 4, no. 51 (March 14, 2007).
47. Eurasia Daily Monitor, Jamestown Foundation 3, no. 174 (September 21, 2006); 4, no. 51 (March 14, 2007).
48. Agence France-Presse, March 14, 2007.
49. Moscow Times, March 23, 2007.
50. Vedomosti, June 25, 2007, B3.
51. Eurasia Daily Monitor, Jamestown Foundation 4, no. 144 (July 25, 2007), 4; Financial Times, August 20, 2007, 14.
52. Moscow Times, February 15, 2007. To broaden the base, both German companies also agreed to transfer 4.5 percent of their holdings to Dutch Gasunie.
53. Russia Profile 4, no. 2 (March 2007), 48.
54. Wall Street Journal, March 31, 2006, A15.
55. Financial Times, April 3, 2006, 2.
56. Moscow Times, April 3, 2006.
57. Financial Times, April 3, 2006, 2.
58. Financial Times, April 15, 2006.
59. Stern, 144.
60. Eurasia Daily Monitor, Jamestown Foundation 4, no. 160 (August 16, 2007), 2.
61. Moscow Times, March 31, 2006.
62. Financial Times, April 22, 2005, 14.
63. Mosnews.com, February 24, 2005; Financial Times, December 22, 2005, 14.
64. New Europe, February 28, 2007.
65. Business Wire, Prime-TASS, April 10, 2007; Eurasia Daily Monitor, Jamestown Foundation 4 (April 23, 2007); Financial Times, September 21, 2007, 3.
66. Financial Times, December 12, 2007, 6.
67. The Economist, February 22, 2007.
68. Kennan Institute Meeting Report 24, no. 3 (2006).
69. http://HRRP;/SVT.SE/SVT/JSP/CROSSLINK.JSP?D=53332&A=717462.119=SENASTENYTT_613854&1POS=RUBRIK_717462E
70. Eurasia Daily Monitor, Jamestown Foundation 4, no. 68 (April 6, 2007).
71. Eurasia Daily Monitor, Jamestown Foundation 4, no. 53 (March 16, 2007); New Europe, January 24, 2007.
72. Eurasia Daily Monitor, Jamestown Foundation 4, no. 53 (March 16, 2007).
73. A study prepared jointly by the Council on Foreign and Defense Policy and the State University, Higher School of Economics in Moscow argued that the geopolitical-energy situation “in the Caspian region is generally developing in favor of the West.” Meeting with criticism, the authors decided to revise their findings to show a greater likelihood of Russian progress and they dropped the conclusion that “Russia’s influence in the Caspian region will be minimized.” The Council on Foreign and Defense Policy, State University, Higher School of Economics, RIO-Center, The World around Russia: 2017: An Outlook for the Midterm Future, Moscow, 2007, 236; Vremya Novosti, January 11, 2007, 2; Current Digest of the Post-Soviet Press, January 31, 2007, 5.
74. Asia Times Online, May 27, 2006.
75. Financial Times, January 23, 2007, 19; August 20, 2007, 6.
76. Stern, 144.
77. This is not unique to Russia. The U.S. government among others has used similar tactics as when it imposed an economic blockade against Cuba and earlier against China.
78. Financial Times, May 30, 2006, 4.
79. Financial Times, November 27, 2006.
80. Rossiyskaia Gazeta, November 29, 2006.
81. Kremlin, Russia, February 1, 2007.
82. Stern, 144.
83. Stern, 103.
84. Vremya Novostei, January 30, 2007, 1.
85. Financial Times, November 15, 2006, 3; December 19, 2006, 3; March 26, 2007, 16; Oreanda RIA, December 20, 2000; Prime-TASS, March 26, 2007 (20:48).
86. Financial Times, November 1, 2007, 3.
87. Gazprom Web site, March 15, 2007. Just to fill in the other pieces of this matrix, E.ON equity’s ownership in Gazprom comes from a direct investment by E.ON when it bought up 3.5 percent of Gazprom stock and from an investment by Gerosgaz, a company that bought another 3 percent of Gazprom. To make it all the more confusing, Gerosgaz is a joint venture that E.ON owns with, believe it or not, Gazprom. In other words, Gazprom owns part of itself. That is why this part of what should be the main text is in a footnote.
88. Goldman, The Piratization of Russia, 163; Marshall I. Goldman, Détente and Dollars (New York: Basic Books, 1975), 134–36, 163.
89. Ria Novosti, March 20, 2007; Eurasia Daily Monitor, Jamestown Foundation (February 21, 2007). For a more complete list see Stern, 113.
90. Financial Times, February 4, 2006, 6; Eurasia Daily Monitor, Jamestown Foundation 4 (August 16, 2007).
91. ITAR TASS, June 22, 2006.
92. Financial Times, April 20, 2006, 4.
Chapter 7
1. David Johnson’s Russia List 4, no. 127 (June 5, 2007).
2. Financial Times, May 29, 2007, 2.
3. Argumenty i Fakty, March 12, 2001, 3.
4. Washington Post, October 17, 2006, A1.
5. New York Times, October 18, 2006, A15; Washington Post, October 18, 2006, A8.
6. Kommersant, October 18, 2006.
7. New York Times, January 4, 2007, A1; Kommersant, October 18, 2006; Washington Post, December 31, 2005, A1.
8. Washington Post, October 17, 2006, 4.
9. Since these raids were conducted less than a month before the mid-term November national elections, Congressman Weldon charged it was a political attack designed to support his Democratic opponent. Given that the Republican Party controlled the Justice Department at the time, this seemed far-fetched. Yet it does add another layer of complexity to the charges that the Department of Justice under Attorney General Alberto Gonzales had at the time drawn up a list of local U.S. attorneys who were to be fired for failure to investigate corruption and election fraud by Democrats. The U.S. attorney in the Weldon case did, at least, seem resolute given that the target was a ten-term Republican who, in the wake of all these scandals, went down to defeat.
10. Financial Times, April 9, 2007, 2; New York Times, March 5, 2007, A11.
11. Wall Street Journal, April 5, 2007, A2; BP Statistical Review, 30.
12. Financial Times, April 9, 2007, 2; New York Times, March 5, 2007, A11; BP Statistical Review, June 2007, 24, 27, 30.
13. Financial Times, April 9, 2007, 1.
14. Eurasia Daily Monitor, Jamestown Foundation 4, no. 30 (February 12, 2007), 4.
15. Financial Times, January 5, 2008, 1, 4.
16. Moscow Times, March 5, 2007, International Herald Tribune, December 27, 2007, 3.
17. David Johnson’s Russia List, March 7, 2007, no. 55, item
35; Financial Times, March 12, 2007, 11.
18. Financial Times, November 29, 2007, Special Section, 3.
19. Financial Times, July 6, 2007, 6.
20. Leslie Dienes, “Natural Gas in the Context of Russia’s Energy System,” Demokratizatsiia, 15, no. 4 (Fall 2007), 408.
21. Moscow Times, March 5, 2007.
22. Kommersant, December 25, 2006, 8.
23. Moscow Times, March 5, 2007; Stern, 24.
24. Financial Times, June 1, 2007, 16; Eurasia Daily Monitor, Jamestown Foundation 4, no. 114 (June 19, 2007), 1.
25. Moscow Times, February 27, 2007.
26. Moscow Times, February 27, 2007.
27. Financial Times, August 31, 2007, 3.
28. Meeting of the Valdai Hills Discussion Group, Moscow, September 7, 2006; Moscow Times, February 27, 2006.
29. Grace, 194.
30. Financial Times, March 21, 2007, 21.
31. New York Times, July 13, 2006, A10.
32. Moscow Times, March 1, 2007.
33. Kommersant, December 25, 2006, 8.
34. FC Novosti, Russian Financial Central Monitoring, August 24, 2007.
35. Kommersant Russia Daily Online, August 31, 2007; Kremlin.ru, April 26, 2007.
36. Moscow Times, July 18, 2007.
37. Judy Dempsey, “In Russian energy plan, coal is a question mark,” International Herald Tribune, December 27, 2007, 3.
38. Marshall I. Goldman, “The Russian Disease,” International Economy (Summer 2005), 27.
39. Moscow Times, March 3, 2005; March 4, 2005.
40. Moscow Times, March 3, 2005.
41. Moscow Times, March 4, 2005.
42. Moscow Times, March 4, 2005.
43. Olga Kryshtanovskaia and Stephen White, “Putin’s Militocracy,” Post-Soviet Affairs 19, no. 4 (2003), 294.
44. Kommersant, November 30, 2007.
45. New York Times, December 12, 2007, C10.
46. Kremlin.ru, September 9, 2006, Transcript of meeting with participants in the third meeting of the Valdai Hills Discussion Club; Putin referred to Andrei Shleifer and Jonathan Hay.
47. V. Kleiner, “Korporativenoe upravlenie i effek”tivnost deliatel’nost kompani,” Voprosy ekonomikii, no. 3 (2006), 98.
48. Michael D. Cohen, “Russia and the European Union: An Outlook for Collaboration and Competition in European Natural Gas Markets,” Demokratizatsiya, 15, no. 4 (Fall 2007), 381.
49. Vremya novosti, August 31, 2007, 7; Moscow Times, October 4, 2007.
50. Novaya Gazeta, January 18, 2007, 2; Noviye Izvestiai, February 1, 2007, 5.
51. Financial Times, December 1, 2006, 4; Rossiiskaia Gazeta, October 3, 2005.
52. Chicago Tribune, September 27, 2006, 17.
53. Financial Times, December 12, 2007, 9.
54. Wall Street Journal Asia, November 9, 2007, 11.
55. Izvestia, November 27, 2007.
56. Businessweek.com, March 6, 2007; David Johnson’s Russia List 55, no. 33 (March 7, 2007).
57. Financial Times, February 4, 2006, 6.
58. Other purchases include Severstall’s acquisition of Rouge Industries in Dearborn, Michigan, and Lucchine Steel in Italy. Other recent purchases or green field construction include the Magnitigorsk Iron and Steel company’s decision to build a cold rolled steel mill in Ohio; the EVRAZ purchase of Oregon Steel, Highveld Steel, and Vanadium; Norilsk Nickel’s purchase of the Stillwater Mining Co. in Montana; the LionOre Canadian nickel mining company as well as the OM Mining Company; and Gazprom’s purchase of the British gas marketing company, Pennine Natural Gas along with its affiliate, Natural Gas Shipping Services and what someday is expected to be the purchase of the much larger Centrica, which in turn owns British Gas. Wall Street Journal, July 17, 2007, A2; Financial Times, July 19, 2007, 1; Moscow Times, July 17, 2007; New York Times, September 6, 2007, C4.
59. Financial Times, September 21, 2007, 10; Eurasia Daily Monitor, Jamestown Foundation 4, no. 189 (October 12, 2007).
60. Financial Times, September 20, 1997, 4.
61. Financial Times, November 22, 2006, 2.
62. China Daily, September 17, 2007, 6; Financial Times, September 21, 2007, 3.
63. Kremlin.ru, February 10, 2007; New York Times, February 11, 2007, 4.
Glossary of People and Companies
People
Jack Abramoff A lobbyist in Washington who worked with Texas Congressman Tom DeLay and ended up in prison. One of their clients was a Russian energy company.
Roman Abramovich A former partner of Boris Berezovsky, Abramovich ended up as the main owner of Sibneft, which he sold to the state, making him the richest man in Russia. He used some of the funds to buy the Chelsea soccer team in London.
Vagit Alekperov A former minister of the petroleum industry in the Soviet Union who set aside valuable oil properties for himself and created LUKoil. He is the largest individual stockholder. LUKoil sold 20 percent of its stock to ConocoPhillips.
Svetlana Bakhmina A junior lawyer working for Yukos, she was arrested in the early morning hours and held hostage in an effort to force her boss to return to Russia for questioning after he fled to London.
Stanislav Belkovsky An analyst who works closely with Kremlin officials and who often has leaked information which signaled measures that were about to be taken by the Kremlin.
Boris Berezovsky One of the original oligarchs who became very close to members of Yeltsin’s family. Among other assets he controlled were Sibneft and Aeroflot as well as ORT, the main state-owned TV network. Early on, he befriended Putin and helped him rise to power. However after being criticized on ORT, Putin turned on him, and Berezovsky fled to London where he lives in exile.
Leonard Blavatnik A Russian émigré with an MBA from the Harvard Business School. He is the principle owner of Access Industries, a U.S. company, which is a major stockholder in Tyumen Oil and SUAL, Russia’s second largest aluminum company.
Sergei Bogdanchikov The CEO of Rosneft, the state-dominated oil company that took over ownership of the most valuable properties from Yukos.
Vladimir Bogdanov A veteran oil official who became CEO of Surgutneftegaz when it became privatized.
William Browder The grandson of Earl Browder, the head of the U.S. Communist Party. He established the Hermitage Capital Management Fund, which became a major investor in Gazprom and other Russian companies. After he criticized Russian corporate business practices, he was denied a Russian visa and prevented from returning to Russia.
Lord John Browne The CEO of British Petroleum (BP) who created a 50/50 partnership with Tyumen Oil.
Aleksandr Bulbov A lieutenant general in the Federal Narcotics Control Service who despite his rank was arrested by the FSB in what was thought to be a fight between government agencies over control of state assets.
Vladimir Butov The governor of the Nenets Autonomous District, an area rich in oil deposits, who has been charged with extortion and questionable practices by oil companies seeking to operate in the region.
William Casey The director of the CIA under President Ronald Reagan who is said to have worked with Saudi Arabia to increase oil production in an effort to precipitate a drop in oil prices and hurt the USSR’s export earning capacity in order to bring about the collapse of the communist state.
Viktor Chernomyrdin The former minister of the gas industry who transformed the ministry into the joint stock company Gazprom. He later became a prime minister of Russia. Yeltsin later fired him and made him chairman of Gazprom.
Oleg Deripaska An oligarch who became a favorite of Putin, Deripaska won control of Rusal, the country’s largest aluminum company. A controversial figure, at various times he has been denied visas to visit the United States. He is said to have become a major holder of General Motors stock.
Robert Dudley The managing head of the TNK-BP oil company.
Boris Fedorov A former minister of finance, he went on to become a major partner in United Financial Group. A major stockholder in Gazprom, Federov led an ef
fort to remove its then CEO Rem Vyakhirev.
Dmytro Firtash A Ukrainian businessman who began by bartering goods between Ukraine and Turkmenistan, he became the head of Eural Trans Gas, a shadowy intermediary between Ukraine, Turkmenistan, and Gazprom.
Mikhail Fridman One of the original oligarchs who created Alfa Bank. He also became one of the principle owners of Tyumen Oil. He is one of the few original oligarchs who has survived the Putin purges.
Petrostate:Putin, Power, and the New Russia Page 29
