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#11 - JRL 2008-30 - JRL Home
Putin: State To Remain In Control At Gazprom

MOSCOW. Feb 11 (Interfax) - President Vladimir Putin has praised the national and international significance of Russian natural gas monopoly Gazprom (RTS: GAZP) and said that, in view of the company's "strategic significance," the state will continue to keep it "under its direct control."

It is "largely a tested and competent policy not only on the part of the company but also on the part of the government, the state," that has made Gazprom's achievements possible, Putin said at a celebration of the company's 15th anniversary.

"This kind of close interaction is completely in tune with modern trends in the world oil and gas industry. More than that, it offers extra opportunities for the long-term development of the company, the industry and the economy of our country," he said.

"In view of this strategic significance of Gazprom for Russia, the state will continue to keep the situation under its direct control," the president said.

Putin mentioned his promise of several years ago that the state would not split up Gazprom and would make it stronger.

"The staff of the company can see that this promise has been kept. Moreover, Gazprom has become one of the largest companies in the world; for the past five years amounts that Gazprom pays in taxes have doubled and account for nearly 20% of the country's budget revenues, while (the company's) capitalization has reached a new historic maximum level, rising above the mark of $350 billion," Putin said. Gazprom is not only part of the Russian energy system, he said.

"The growing potential of the company, the country's expanding gas supply networks and exports of energy are serious factors behind the strengthening of the prestige of Russia as a reliable supplier both for countries in the CIS (Commonwealth of Independent States) and for countries outside, and on the whole contribute to international energy security," Putin said.

In the 90s, Gazprom played a stabilizing role in Russia's transition to a market economy, and today the company contributes to social programs, he said.

For the last three years, 13 million people in 58 Russian regions have had regular gas supply extended to their homes and the general gas provision rate has risen to 62% from 54%, Putin said.

"For three years, this is a very high indicator," he said.