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Russia: Appointment of Seleznev's Son as Gazprom Manager Seen as Political


CEP20021205000264 Moscow Stringer News Agency WWW-Text in Russian 04 Dec 02

[Unattributed report: "Seleznev's Son Replaces Chernomyrdin's Nephew"]

[FBIS Translated Text]
A. Miller is rigorously investigating the political propriety of his appointments policy.  For example, Kirill Gennadyevich Seleznev has been appointed as head of Gazprom's marketing department.  It is worth noting that the State Duma speaker's son has replaced V.S. Chernomyrdin's nephew, Viktor Nikolayevich Chernomyrdin, in this post.  It is clear that Gazprom's founder [V.S. Chernomyrdin], who is currently ambassador to Kiev, is already of no interest to the president's "Petersburg" entourage.

   The St. Petersburg connection is also indicated by the fact that immediately after his appointment, the 28-year-old graduate of St. Petersburg University, who specialized in impulse devices and rotor lines, was immediately sent a diploma by State Courier Service from this higher educational establishment in "finance and credit" (so that in the future no questions would be raised about him working in this area).

   On the basis of the above, we can have no doubt that Gazprom funding for Seleznev senior's Socialist Party will be guaranteed.

[Description of Source: Moscow Stringer News Agency WWW-Text in Russian -- Website devoted to compromat and exposes of politicians; reportedly supported by former Yeltsin bodyguard Korzhakov and the Yukos oil company.]



THIS REPORT MAY CONTAIN COPYRIGHTED MATERIAL. COPYING AND DISSEMINATION IS PROHIBITED WITHOUT PERMISSION OF THE COPYRIGHT OWNERS.


Unclassified

Document ID: CEP20021203000121



Gazprom to spend $5.7 billion on Northern European pipeline


CEP20021203000121 Moscow Interfax in English 1121 GMT 3 Dec 02

[FBIS Transcribed Text]


  MOSCOW. Dec 3 (Interfax) - Gazprom plans to spend $5.7 billion on a project to build the Northern European gas pipeline, Gazprom CEO Alexei Miller said at a press conference on Tuesday.
[Description of Source: Moscow Interfax in English -- non-government information agency known for its aggressive reporting, extensive economic coverage, and good coverage of Russia's regions]

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Russia: Gazprom cuts Itera gas exports to Ukraine by 65 percent


CEP20021202000345 Moscow Interfax in English 1719 GMT 2 Dec 02

[FBIS Transcribed Text]


MOSCOW. Dec 2 (Interfax) - Russia's gas company Gazprom has cut exports of Central Asian gas to Ukraine by the Itera group by 65%, given Itera's debts to Gazprom for services to store and transport gas to Ukraine, Gazprom announced in a press-release.
  On November 25, 2002, Gazprom reduced Itera's exports to Ukraine by 50%. However, to this day, Itera has not settled its debt to Gazprom, the press-release says.
[Description of Source: Moscow Interfax in English -- non-government information agency known for its aggressive reporting, extensive economic coverage, and good coverage of Russia's regions]

THIS REPORT MAY CONTAIN COPYRIGHTED MATERIAL. COPYING AND DISSEMINATION IS PROHIBITED WITHOUT PERMISSION OF THE COPYRIGHT OWNERS.


Unclassified

Duma Speaker Says Government Unlikely to Adopt Gazprom Reform at 19 Dec Session


CEP20021129000347 Moscow Kommersant in Russian 29 Nov 02 P 2

[Report by Irina Rybalchenko: "Gazprom Reform May Be Postponed Again"]

[FBIS Translated Text]
Yesterday [28 November] State Duma speaker Gennadiy Seleznev spoke at a conference of the "Gas Vertical" parliamentary association.  He stated that the solution to the question of the liberalization of the gas market, to be discussed at the 19 December government session, is unlikely to be adopted.

   The reform of Gazprom must be carried out taking into consideration the interests of absolutely all consumers -- both communal domestic and industrial consumers.  "The 'Gas Vertical' association, whose members include deputies, Federation Council members, independent gas producers, and governors of gas-producing regions, will help take account of these interests to the maximum degree," Gennadiy Seleznev stated yesterday.  And he added:  "The reform must be such that there is no impression that people's pockets are again being emptied."  Meantime, according to Gennadiy Seleznev, the government has still not sorted out the key issues -- rules for gas transportation and the setting of tariffs.  The issue of the liberalization of the Gazprom shares market has also not been resolved.

   In addition, there is no consensus within the gas industry.  The independent producers (Itera and Nortgaz and the major oil companies producing associated petroleum gas -- Rosneft, TNK, and LUKOIL-Surgutneftegaz) consider that there should be competition in gas production and marketing and tariffs should not be set by the state but by the market.  Gazprom itself is against handing over production and sales to separate enterprises.  Valeriy Yazev, chairman of the State Duma gas subcommittee, supports it.

   Viktor Boroday, chairman of the "Gas Vertical" parliamentary association, proposes dividing the gas market into regulated and unregulated markets (for communal domestic and industrial consumers respectively).  "Gas Vertical" members also insist that independent producers receive an export quota of 30% of the total volume of gas produced by them.

   The Federal Energy Commission [FEK] is in favor of increasing gas tariffs.  According to its deputy chairman, Oleg Zhilin, the average adjusted price for gas in the Russian domestic market this year is $19.8 for 1,000 cubic meters.  On the border with Western Europe it is 400% higher and on the Russian border with Kazakhstan 100% higher.  "Artificially low gas prices distort heating and electricity prices.  And there is no reason to finance high-earning sectors -- the chemical, petrochemical, and aluminum industries -- through cheap gas," he said.  At the same time, he thinks, it is in the state's interests to maintain its monopoly over gas exports.

   "I do not think the government will adopt some strategic decision on Gazprom's reform on 19 December," Gennadiy Seleznev said recapping.  But "Gas Vertical"s' members will try to formulate proposals of their own for the upcoming reform.


[Description of Source: Moscow Kommersant in Russian -- Informative daily newspaper purchased by Boris Berezovskiy in 1999 and often reflecting his viewpoint.]



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Unclassified

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