Gazprom and Russian Government
Gazprom global strategy and Russian Government.
First classes on strategic insights, first cases. Nokia case is a recognized business success and an example of cooperation between a government and a company.
Can we say the same about Gazprom and Russian Government?
In 2005 Russian government has become the major shareholder of Gazprom. (Kazin F 2006) Consequently Gazprom announced its strategic goal to become a leader in oil gas / energy sector (Miller A. 2005). Later Kremlin followed with the announcement saying that Russian Federation will become a leader in the world energy. A very coordinated move. Gazprom and government is a team.
The Russian society reacted on the above with the development of two polar positions: the so called “imperialistic”, meaning finally a government and a business work together in order to protect and expand the country’s national interests and the “pessimistic”, meaning that Russian national resources will be sold out to the international businesses. In reality everything is not that black and white. A careful look at the same actions undertaken by Gazprom can be evaluated in the favor of both the above mentioned positions.
Gazprom is playing a very complicated and delicate game, the strategic essence of which is to maximize its access to the liberalized European market and its end user, without trading off its monopolian advantages if possible. To reach this goal Gazprom has developed the following strategic concepts forming its general strategy:
1. Pricing. Price increase for the end users both internally and externally 2. Partial liberalization of the Russian gas market as a respond to the liberalization of the European market. 3. Diversification on the energy business and end products 4. Minimization of the transit risks
1. Pricing.
Gazprom policy on pricing can be analyzed in two perspectives: internal / CIS market and external market
For the customers from the Western part of Europe
First classes on strategic insights, first cases. Nokia case is a recognized business success and an example of cooperation between a government and a company.
Can we say the same about Gazprom and Russian Government?
In 2005 Russian government has become the major shareholder of Gazprom. (Kazin F 2006) Consequently Gazprom announced its strategic goal to become a leader in oil gas / energy sector (Miller A. 2005). Later Kremlin followed with the announcement saying that Russian Federation will become a leader in the world energy. A very coordinated move. Gazprom and government is a team.
The Russian society reacted on the above with the development of two polar positions: the so called “imperialistic”, meaning finally a government and a business work together in order to protect and expand the country’s national interests and the “pessimistic”, meaning that Russian national resources will be sold out to the international businesses. In reality everything is not that black and white. A careful look at the same actions undertaken by Gazprom can be evaluated in the favor of both the above mentioned positions.
Gazprom is playing a very complicated and delicate game, the strategic essence of which is to maximize its access to the liberalized European market and its end user, without trading off its monopolian advantages if possible. To reach this goal Gazprom has developed the following strategic concepts forming its general strategy:
1. Pricing. Price increase for the end users both internally and externally 2. Partial liberalization of the Russian gas market as a respond to the liberalization of the European market. 3. Diversification on the energy business and end products 4. Minimization of the transit risks
1. Pricing.
Gazprom policy on pricing can be analyzed in two perspectives: internal / CIS market and external market
For the customers from the Western part of Europe
Bibliography: www.ft.com www.gazprom.ru www.gazpromukrainefacts.com www.izvestia.ru www.nytimes.com www.vedomosti.ru