The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Russia: Putin's power comes under scrutiny

Stock markets are unimpressed by president's pro-business reforms

Putin: Losing his grip on business?

Not long ago, foreign investors saw president Vladimir Putin as an all-powerful leader, before whom oligarchs, ministers, judges and soldiers all trembled. The strength of his authority was considered the foundation of Russia's economic growth. But recent events have had some analysts wondering if Putin, with only two years left as president, might be turning into a lame duck.

What else can explain state oil company Rosneft's apparent refusal to merge with Gazprom, the state gas monopoly? Putin himself declared on television in September 2004 that the state would swap Rosneft for 10% of Gazprom shares, which are presently held in treasury. The merger was scheduled to take place this month.

The swap would give the state more than 50% of Gazprom, and create a national oil and gas champion able to compete on equal terms with the world's supermajors. It would also pave the way for liberalization of Gazprom shares, so foreigners could invest in Gazprom's locally listed equity without any of the present restrictions. Thus the Gazprom/Rosneft merger was a key part of the president's economic strategy.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree