Russian Government Wants Gazprom Back

Gazprom's CEO Alexei Miller has stated that the Russian Government is going to increase its share in Gazprom. "Very soon we will return to the issue of increasing the state share in the equity capital of Gazprom. So far, it is too early to speak about certain decisions but there is a strategic vision of the need for such a step," Miller said in a statement.

This is the first public statement by the monopoly's management indicating that it is prepared to give the shares being on the balance of company's subsidiaries to the state.

Although formally the government holds only 38.37% of Gazprom shares, in practice it manages also 17.33% of shares belonging to Gazprom subsidiaries because these subsidiaries vote according to instructions of Gazprom management. In February 2003, Miller even received a special gratitude of President Putin because he managed to collect enough chares on the balance of Gazprom subsidiaries to ensure control over the company to the state together with the state-owned stake.

However, government officials say that direct state control over 51% of shares is required to liberalize the market of Gazprom shares. Otherwise the state may remain a minority shareholder of Gazprom.