international magazine
08 / 2004


BEEFING UP THE STATE MUSCLE
Russia's natural gas monopoly Gazprom is set to take over Rosneft



The Kremlin gave a nod to the transfer of the state oil company shares to the natural gas monopoly in exchange for Gazprom's subsidiary shares in order to consolidate in the state hands controlling stake in Gazprom. This, the government authorities say, is paving the way to much sought market capitalisation growth and liberalisation of Gazprom's shares trade. Analysts name different reasons for the share swap and many hold that the state uses this step to boost its control over strategically important sector setting up at the same time conditions for attracting multibillion investments to the country.