Expert word

In Memoriam of National Property

They still say on TV that Gazprom is our national property. It was the case in the past. The Breath of Gazprom. Children of Gazprom. The Prime Minister (almost President) from Gazprom.

Everything for Gazprom, nothing but Gazprom. SIBUR? Let Gazprom take it over! NTV? Let Gazprom take it over! Sibneft? Let it be Gazprom’s! Rosneft? Let it be Gazprom’s Rosneft! RAO UES of Russia? Let it be Gazprom’s! Gazprom will be worth one trillion dollars and will become the world’s highest priced company!

On May 6, 2006 Gazprom was worth over 300 billion dollars whereas the Central Bank’s gold and currency reserves totaled 231 billion dollars. Yesterday, on May 29, 2007 Gazprom was worth 210 billion dollars, and the Central Bank’s reserves about 400 billion dollars. The dreams have not come true.

Quite a few world class corporations have appeared recently in Russia. In addition to Gazprom, scores of national champions are now up and running. The national economy is being deconcentrated at a fast rate. In 1999 two (guess who!) borrowers accounted for 20.3 % of Sberbank’s total credit portfolio. In 2006 the top ten accounts for a mere 15.4 %. Big business is going big in Russia. Gazprom has become primus inter pares.