Petrostate: Putin, power, and the new Russia

257 Pages·2008·1.665 MB·English

by  Putin, Vladimir Vladimirovich;Goldman, Marshall I

Petrostate
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PETROSTATE
Putin, Power, and the New Russia
Marshall I. Goldman
1
2008
3
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Copyright © 2008 by Marshall I. Goldman
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All rights reserved. No part of this publication may be reproduced,
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without the prior permission of Oxford University Press.
Library of Congress Cataloging-in-Publication Data
Goldman, Marshall I.
Petrostate : Putin, power, and the new Russia / Marshall I. Goldman.
p. cm.
Includes bibliographical references and index.
ISBN 978–0-19–534073–0
1. Energy policy—Russia (Federation) 2. Russia (Federation)—Foreign relations.
3. Putin, Vladimir Vladimirovich, 1952–. I. Title.
HD9502.R82G65 2008
327.47—dc22 2007040202
1 3 5 7 9 8 6 4 2
Printed in the United States of America
on acid-free paper
To Merle; not the First Dedication and I Hope not the Last
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Contents
List of Figures and Tables viii
Preface ix
Introduction R ussia—Once Again an Energy Superpower 1
Chapter 1 Russia as an Early Energy Superpower 17
Chapter 2 W orld War II to 1987: Russia Looks Inward
and Outward 33
Chapter 3 P irates Unleashed: Privatization in the
Post-Soviet Era 55
Chapter 4 Post-1998 Recovery: The Petroleum Export
Bonanza 73
Chapter 5 Putin Takes Over: The Return of the Czar 93
Chapter 6 Natural Gas: Russia’s New Secret Weapon 136
Chapter 7 Russia: The Unrestrained Super Energy
Power 170
Notes 211
Glossary of People and Companies 225
Index 231
Figures and Tables
FIGURES
Figure 1 Gazprom Dispatching Center 2
Figure 2 Oil and Gas Pipeline to Europe 8
Figure 3 Proposed Far East Oil and Gas Pipeline 9
Figure 4 The Breakup and Reconsolidation of the
Ministry of Petroleum and Rosneft 62
Figure 5 How Price, Not Putin, Affected Oil Production 171
TABLES
Table Intro.1 Russian and American Petroleum Production
and Export 4
Table 2.1 Petroleum Production 35
Table 4.1 Russian Oil Production and GDP 80
Table 4.2 Russian Exports and Imports 92
Table 5.1 Monthly Change to Industrial Production 95
Table 5.2 Putin Creates National Champions 100
Table 5.3 Yukos Senior Executives—Arrest and Exile 117
Table 5.4 Renationalization and Control by Siloviki 134
Table 6.1 Gazprom Expansion Abroad 153
Table 6.2 Europe’s Reliance on Russian Gas 166
Table 7.1 Russian Petroleum Company Expansion
Abroad 175
Table 7.2 Russian Gas and Petroleum Available
for Possible Export 189
Table 7.3 Siloviki in Business 193
Table 7.4 Princelings 196
Preface
More than in my past writing efforts, I owe thanks to a set of enthusi-
astic helpers. They provided invaluable help in preparing my manuscript.
Two of them have the ability to read my handwriting, something I am
not always able to do myself. Doing my best to ignore the advances of
the modern computerized world, I prefer to write out the text in long-
hand on legal-size yellow pads. Robert Price was able to transcribe
those writings for me onto a computer, so I was devastated when he
went to work at a higher calling. To my relief Sue Sypko took over and
proved to be as able, and, equally important, she hasn’t frowned when
I bring her yet another set of nearly incomprehensive scribbles. In fact,
I have taken to awarding her Stakhanovite prizes for her efforts. The
third member is Coco Downey, who offered herself as research assis-
tant and eagerly agreed to chase after obscure facts and display them in
a way that aids the understanding of how things work in Russia. I have
come to call her “the wizard.” After reading her charts and diagrams in
the chapters that follow, I suspect the readers, even those in Russia,
will agree that they can now understand the previously incomprehen-
sible. The fourth and most unlikely member of this quartet is Thomas
Luly, a most amazing high school junior. Out of the blue he wrote an
e-mail asking if I needed any assistance. To humor him, I sent him an
early draft of the manuscript and to my amazement, he not only read
the whole thing and made extensive notes, but he found more incon-
sistencies in the text than I am embarrassed to admit should have been
there. He also asked some probing questions that should help both me
and I hope future readers deal with issues that are all too often skirted.