Gazprom Shares May Be Flotated

According to Boris Fyodorov, a member of the Gazprom board of directors and chairman of the Russian Economic Society, the floatation of Gazprom shares has been delayed for a long time but he has the impression that it will happen by the end of the year. Mr. Fyodorov added, 'delaying floatation is scandalous and the government understands this.' Mr Fyodorov believes 'all talks about gradual floatation should be forgotten and it will be full and complete.'

Speaking about the government's plans for reforming Gazprom, Mr Fyodorov mentioned that he opposes proposals 'to restructure the company. The main shareholders are unhappy with the government about plans to reform Gazprom,' he said. 'As a shareholder I am not happy when the government decides to divide the company into smaller parts. It is clear that when anything is divided in this country, something is always stolen.' In Mr Fyodorov's opinion the most pressing problem today is not the 'restructuring of the company but the resolution of other problems such as getting rid of non-specialized shares for example.'

Among the greatest problems in the Russian gas industry Mr Fyodorov mentioned low gas prices. 'Prices are so low now that it has become unprofitable to produce gas. Gazprom would have been ruined a long time ago if it did not export gas,' he stressed. However, he does not suggest that gas prices should be doubled. 'Let us have normal prices and normal conditions and then decide whether or not to divide the company,' Mr Fyodorov said.