Petrostate:Putin, Power, and the New Russia
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in Iraq, 126
in Komi Republic, 128, 219n70
Mobil and, 3, 125
stock, 85, 216n34
Lummus, 27
machinery, 202
MAD. See Mutually Assured Destruction
mafia
banks controlled by, 109
FBI and, 147
Federov and, 141
St. Petersburg, 192–94
Washington, 192, 194
Magna, 204
Maiko oil fields, 22
Makarov, Igor, 104, 146, 147, 177, 227
manufacturing, 12–15, 202
MAR. See Mutually Assured Restraint
Marathon Oil, 227
Marinsky Opera of St. Petersburg, 93
Maritime Provinces of Russian Far East, 198–99
Mattei, Enrico, 45–46, 227
Matvenyeko, Valentina, 196, 208, 227
Media-Most, 102, 103, 226
Medvedev, Alexander, 3, 143, 163, 169, 227
Medvedev, Dmitry, 227
on Baku, 22
as FOP, 192, 193
Gazprom and, 104, 140, 141, 143, 202, 227
as Putin’s nominee for president, 201–2
Menatep (cooperative), 106
Menatep Bank, 230
Khodorkovsky and, 64, 76, 106–9, 227, 230
Yukos and, 106–9, 227
Merkel, Angela, 159, 204
Mexico, 21
Middle East, dependence on, 3, 46–47, 81–82, 126, 136–37, 157
military, Russian, 13, 14, 15, 97, 207
Miller, Alexei, 104, 140–42, 143, 146, 169, 190–91, 200, 227
Miller (company), petroleum reserve data and, 87
“Mineral’no-syr’evye resursy v strategi razvitiia Rossiiskoi ekonomiki,” 97
Ministry of Foreign Trade, 28
Ministry of Fuel and Energy, 61
Ministry of the Chemical Industry, 42
Ministry of the Gas Industry, 2, 3
privatization and, 59–61
production, planning and, 42
Ministry of the Petroleum Industry, 3
industry breakup and, 61, 62f–63f
production, planning and, 42
Misamore, Bruce, 110, 118, 227
Mitsubishi, 72, 128, 130
Mitsui, 72, 128, 130
Mittal, 203
Mobil, 3, 125. See also Exxon-Mobil
Mogilevich, Semion, 148, 228
MOL (Hungarian natural gas utility), 230
Moldova, 49, 150, 152, 153, 168
“moral infrastructure,” 190
Morse, Edward, 89
Moskovy, 17
Most Bank, 226
Mulva, James, 85
Mussolini, Benito, 28, 31
Mutually Assured Destruction (MAD), 15, 178, 207
Mutually Assured Restraint (MAR), 15, 178–80
NABUCCO (pipeline), 161, 230
Hungary, Austria and, 9–10, 155–56
South Stream v., 230
Naftasib, 177
Naftogaz, 146, 152
Napoleon, 40
Naryshkin, Sergei, 192, 193
“national champions”
economic imperialism and, 172–74
Gaddy on, 98–99
Putin and, 15, 98–99, 100t, 101, 104, 105, 124–26, 128, 141, 172–73
nationalization. See also denationalization, of Baku; renationalization
of oil fields, 24–26, 45
third world and, 44
NATO countries
contracts with, 164
Putin on, 208
natural gas, 136–69. See also LNG; specific companies/countries
availability of Russian, 188, 189t
coal as substitute for, 178
controlling flow of, 1–3, 7–9, 15, 48–49, 82, 138, 145, 151–52, 156–58, 186, 205–6
costs of, 8–9
for electricity, 182
Europe’s reliance on, 166t, 167–69
flaring, 42–43, 131–33, 184, 186
intermediaries and, 145–49
MAR and, 178–80
market for petroleum v., 164–65
oil prices v., 164–65, 179
as petroleum byproduct, 183–84, 186
privatization and, 59–61
subsidies, 144, 151
transit fees and export duties on, 151, 159
transportation of, 82
to Western Europe, 2, 15, 48–49, 82, 92, 151–52, 153t, 154–60, 166t, 167–69
natural gas pipelines, 47–48, 82. See also Gazprom natural gas pipelines
Baltic Sea, 156–60, 161, 167
bypass/alternatives, 9, 149–52, 156–60, 181, 186
Caspian Sea, 156, 160–62, 221n73
map of government-proposed Far East, 9f
map of primary Russian, to Europe, 8f
poker game, 152–54
power out of, 136–39
preventing southern route, 154–56
Nazarbayev, Nursultan, 154, 228
Nazi-Soviet Pact, 29, 30
Neft Aktiv, 120
Neftesyndikate, 27–28
Nefteyugansk, 65, 230
NEGF. See North-European Gas Pipeline Company
NEGP (North European Gas Pipeline), 230
Nelson Resources, 204
Nenets Autonomous Region, 84–85, 133, 226
Nenets Oil Company, 133
NEP. See New Economic Policy
nepotism, 16, 158, 196t, 197
Netherlands, 12, 166, 167, 202
Nevzlin, Leonid, 108, 118, 228
New Economic Policy (NEP), 26
newspapers, 102, 141
NFK (Neftyanaia Finansovaia Kompaniia), 65
Nigeria, 13, 181
Niyazov, Saparmurat, 146, 228
Nobel, Ludwig, 19–20, 228
Nobel, Robert, 228
competition for markets and, 18–20
Standard Oil and, 25
Noga, 120, 205–6
nomenclatura, 100, 101, 105
Nord Stream (Russian-German pipeline), 230
Gasunie as partner in, 229
Gazprom and, 157–59, 167, 230
Schroeder and, 157–59, 176–77, 228
Warnig and, 158–59, 229
Norex (Canadian oil development company), 230
NOREX Petroleum of Canada, 69
Norilsk Nickel, 224n55, 230
Potanin and, 64–65, 68–69, 182, 230
Norsk Hydro of Norway, 133
Nortgaz, 124
Northern Oil, 114, 229
Northern Territories, 84
North-European Gas Pipeline Company (NEGF), 157
North Pole, 207
North Sea
gas from, 47, 82, 137
petroleum from, 51
Norway, 13, 82, 138, 166, 178
Novatek, 105, 133, 167, 183
Novorossiysk, 161
NTV (TV network), 102–3
nuclear energy
for electricity, 180
France and, 137, 180
Germany and, 158
nuclear weapons, 178
OAO Gazprom, 100
Odessa-Brody pipeline, 162
offshore locations, 10, 71, 128–30
OGEC (Organization of Gas Exporting Countries), 164–65, 180, 230
oil fields. See also specific fields
development of, 228
nationalization of, 24–26, 45
oil pipelines
Baku-Tbilisi-Batumi, 20, 26
Baku-Tbilisi-Ceyhan, 149, 154, 160–61
map of government-proposed Far East, 9f
map of primary Russian, to Europe, 8f
to Murmansk, 111
Nobel, L., and, 19
Trans-Balkan, 161
Trans-Caucasian, 161
Transneft, 111, 134, 186
oil prices. See also price cutting
bargaining power and, 49
cycles in, 88–89
demand and, 90
gas v., 164–65, 179
privatization and, 56, 69, 72
production and, 35t-37t, 49–54, 77, 79–80, 88–89, 171f
recovery of economy and, 96, 170–71
oil production. See also specific countries
auction royalty system for, 23
GDP and, 80t
price cutting, overabundance and limiting, 44
Putin’s presidency and, 99
Russia as largest petroleum producer, 4t-6t, 11, 15–16, 24, 50, 79, 89
U.S. v. Russian, 4t-6t, 11, 20–22, 29, 32, 35t-37t
Okulov, Valery, 103
oligarchs. See also banks; siloviki; specific individuals
politics and, 102–4
privatization and, 58–59, 64, 69
Putin and, 99, 100–116, 117t-119t, 171, 194–98, 200–201
OMV (Austrian utility company), 154, 156, 230
OneksimBank, 65, 68, 230
ONGC Videsh, 72
OPEC. See Organization of Petroleum Exporting Countries
Orenberg gas processing plant, 60
Organization of Petroleum Exporting Countries (OPEC)
GECF v., 179
OGEC v., 164–65
price cutting and, 46–47, 82, 165
Saudi Arabia and, 46, 88–89
Orsk refinery, 59
ORT (TV network), 65, 103, 123, 225
Ossetia, 149–50
Pakistan, 44
Palashkovsky, S. S., 20
Paris Club, 81
Parker, John, 73, 91
Parsees, 17
Patrushev, Nikolai, 196, 200, 228
Persian Gulf, 82, 137, 157
Persians, 17–18, 19, 25, 28
Peter the Great, 17–18
petroleum. See also oil fields; oil pipelines; oil prices; oil production; wells; specific companies/countries
auction system for selling, 18
availability of Russian, 188, 189t
breakup/privatization of industry, 61, 62f-63f, 83–85
byproduct gas of, 183–84, 186
companies, expansion abroad, 173–74, 175t
decline in production, 56, 71–72
as diplomatic weapon, 43–49
extraction with rags and buckets, 18
franchising system for selling, 18
lower standard of living and per capita consumption of, 21
market for gas v., 164–65
reserve data companies, 87
Russia v. U.S. production, 4t-6t, 11, 20–22, 29, 32, 35t-37t, 46
Saudi Arabian production, 11, 13, 35t-37t, 79, 91
Soviet balance of trade and, 29–31
stagnation, 22–24
petroleum exports. See also specific countries
politics and, 28–29, 31–32
post-1998 recovery and, 73–92
Sutton on, 29, 213n51
Petukhov, Vladimir, 65, 108–9, 228
Philbro Energy Products, 84
Phillips Electronics, 93
Pichugin, Alexei, 108, 115, 117
pipelines. See natural gas pipelines; oil pipelines; specific countries/pipelines
planning, production and innovation, 39–43
Poland, 153, 156, 159, 162, 166
Polar Lights, 84
politicians, for sale, 176–78
politics
economic blockades against China and Cuba, 221n77
energy resources and, 3, 7, 11, 13, 14, 48–49, 84–85, 138, 163–64, 169
oil exports and, 28–29, 31–32
oligarchs and, 102–4
social problems and, 199
pollution, 128, 131, 159, 185, 219n70
Polo, Marco, 17
population, shrinking, 198–99
Portugal, 28, 96, 153
Potanin, Vladimir
banks and, 68–69
Loans for Shares and, 63–65, 68
Norilsk Nickel and, 64–65, 68–69, 182, 230
OneksimBank and, 65, 68, 230
Sidanko and, 65, 68, 69–70
poverty, 96, 199
Prana, 122
price cutting, 20, 23, 32
OPEC and, 46–47, 82, 165
overabundance/limiting oil production and, 44
Seven Sisters and, 45–46
PricewaterhouseCoopers (PWC), 122–23
Primakov, Evgeny, 94, 228
princelings, 196t, 197
privatization
chaos and, 57–59
fight over spoils and, 188, 190–91
gas and, 59–61
incentives and, 53
oil prices and, 56, 69, 72
oligarchs and, 58–59, 64, 69
petroleum industry breakup and, 61, 62f-63f, 83–85
in post-Soviet era, 55–72
renationalization v., 133, 173–74, 176, 184
taxes and, 56–57, 61, 64, 84–85
vouchers and, 58, 60, 106, 107
production. See also oil production
industrial, recovery and, 95t, 96–97, 171
planning, innovation and, 39–43
plan targets and, 30–31, 53
Production Sharing Agreements (PSAs), 71–72, 86
Sakhalin and, 71–72, 129–33, 174
taxes and, 174
Turkmenistan and, 148
productivity, 4, 196
profit and loss, 30, 45
Protek, 200
PSAs. See Production Sharing Agreements
purges, 99, 100–120, 226. See also specific companies/individuals
Putin, Vladimir. See also FOP
at Balkan Energy Cooperative Summit, 49
Berezovsky and, 100–104, 105, 123, 172, 225
Bush and, 208–9
Chechnia and, 94–95, 102, 172
Deripaska and, 124, 226
dissertation by, 97–99
foreign firms and, 85–87
Gazprom and, 83, 100–101, 104–5, 139–44, 190–91
Kudrin and, 192, 201, 227
“national champions” and, 15, 98–99, 100t, 101, 104, 105, 124–26, 128, 141, 172–73
on NATO, 208
oligarchs and, 99, 100–116, 117t-119t, 171, 194–98, 200–201
politics and, 102–4
as president, 15, 99–101, 139
as prime minister, 93–96, 103, 170, 172, 201
purges, 99, 100–120, 226
on Russia’s reliability, 164
Schroeder on, 172
Sobchak and, 97, 139, 192, 228
state of the nation speech, 2006, 142
three envelopes, Yeltsin and, 194
Timchenko, Gunvor and, 229
as Time “Man of the Year,” 171
TNK-BP and, 70, 126–27
too many foreigners, 87
TV networks and, 102
Warnig and, 158–59, 229
on World Trade Organization and IMF, 207–8
PWC. See PricewaterhouseCoopers
Qatar
gas reserves of, 139
GECF and, 179
OGEC and, 164, 165
QM Group, 69
racial tensions, 23
Raiffeisen Bank, 147
Raiffeisen Investment AG, 147
RAO Gazprom, 100
Rapallo Pact, of 1922, 159
Raymond, Lee, 112–13, 228
Reagan, Ronald, 48–51, 82, 137–38, 226
Rebgun, Eduard K., 122
recessions, 75, 77, 180
recovery
of economy, 14–16, 95t, 96–97, 170–71, 203
post-1998, petroleum export and, 73–92
refinery construction, 26, 27
reform
Gorbachev on, 60, 106
transparency and, 110–11
renationalization, 15, 134t, 135
privatization v., 133, 173–74, 176, 184
of Sibneft, 15, 104, 123–24, 134
of Yukos, 15, 105, 123, 174
Renova, 229, 230
Revolutions
1905 Russian, 23
1917 Bolshevik, 23, 24–2
6, 174
RN-Razvitiye, 122
Rockefeller, John D., 19–20, 228
Roketsky, Leonid, 70, 228
Romania, 34, 154
Romashkino, 31, 34, 230
Roosevelt, Franklin D., 76
ROP. See Russian Oil Products
Rosneft
Bogdanchikov and, 114–15, 190–91, 200, 225
breakup and reconsolidation of petroleum industry and, 61, 62f-63f
Conoco and, 84
Gazprom and, 83, 173, 184, 186, 190–91
Loans for Shares and, 62, 64–65, 121–22
at Sakhalin, 72
Sechin and, 191, 195, 228
as state-owned, 3, 15
Vavilov, Northern Oil and, 114, 229
Yukos and, 79, 106, 120–23, 124, 127, 176, 190–91, 217n15, 225, 230
Rosneftegaz (Russian Oil and Gas), 61
Rosoboronexport, 124, 134
Rostekhnology, 193
RosUkrEnergo (RUE), 145–48, 226
Rothschild brothers, 20, 23, 228
Royal Dutch Shell, 28, 44, 71. See also Shell
RUE. See RosUkrEnergo
Ruhrgas (German natural gas company), 83, 167–68, 229, 230
Rusal (aluminum company), 123, 182, 226
Rusia Petroleum, 131
Russia. See also USSR
companies as partners, 202–4
as energy superpower, 3, 7, 10, 14–16, 17–32, 97–98, 170–209
investments abroad, 87–88, 169, 204–6, 224n55
investments in U.S., 87–88, 169, 206
as largest gas producer, 180
as largest petroleum producer, 4t-6t, 11, 15–16, 24, 50, 79, 89, 180
new assertive, 206–9
as oil exporter, 20–21
as oil importer, 39, 49, 53
overcommitment by, 181–84, 187
U.S. investments in, 87–88
U.S. petroleum production v., 4t-6t, 11, 20–22, 29, 32, 35t-37t
as victim of Dutch disease, 12–14
Russian Central Bank, 91, 100, 104–5, 187, 203, 226
Russian Credit Bank, 107
Russian Disease, 12, 190–91
Russian Oil Products (ROP), 28
Russneft, 124, 200, 227
RWE, 156
Rybin, Yevgeny, 108
Saakashvili, Mikhail, 150–51, 228
Sakhalin, 128–33, 162
Gazprom in, 129–33
Japanese in, 26, 72, 128–30, 185
PSAs and, 71–72, 129–33, 174
Sakhalin I, 72, 128, 131
Sakhalin II, 71–72, 129, 130, 135, 163, 185
Sakhalinmorneftegaz, 72
Sale & Company, 28
Samaraneftegaz, 121
Samotlor (oil-producing site), 38, 69, 230
Sarkozy, Nicolas, 173
Saudi Arabia
ARAMCO Consortium and, 21
OPEC and, 46, 88–89
petroleum production and, 11, 13, 35t-37t, 78, 79, 91
reserves of, 139, 180
Soviet invasion of Afghanistan and, 50–54
SBS/AGRO bank, 65, 68, 228
Scaroni, Paolo, 89
Schlumberger, 26, 79
Schroeder, Gerhard, 228
gas and, 82, 136, 157–59
Nord Stream and, 157–59, 176–77, 228