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Monday, October 24, 2016

Pirouettes Transneft

In the Wake of resignations and reassignments of recent days in the network edition “Free press” has appeared a very interesting suggestion concerning the possibility of the Vice Prime Minister Arkady Dvorkovich to become the head of the major infrastructure companies of the country, Transneft, the pipeline monopoly, transporting for 71 thousand km of the network to 90% of all produced in Russia crude oil.

photo: Natalia Gubernatorova

Transneft – key company of the Russian energy sector, to which they must apply all the oil kings of the country. The key not only for its infrastructural importance, but financial performance: during the first half of 2016, its revenue amounted to 397,7 billion, only commercial and administrative expenses 22.1 billion and net profit of 9.9 billion rubles (in the first half of last year net profit amounted to altogether unimaginable 48.7 billion rubles). While 15.5% of its revenues from the provision of export services. Something to think about, isn’t it?

For a long time, Transneft was operating completely in the spirit of capitalism raw zero: the main thing – to control the financial flows, maintaining fixed assets in working condition, and to facilitate the implementation of new ambitious projects. Matched to the objectives were selected and head: General-major of FSB Nikolay Tokarev. In 2000-2007, before the direct leadership of “Transneft”, he was the head of “Zarubezhneft”,which became infamous after an international investigation in connection with the Iraqi United Nations program “Oil in exchange for food”.

Over recent years, Transneft, according to the media, had the respect of the businessman Ziyavudin Magomedov. So, the press has repeatedly described how the structure of the businessman Ziyavudin Magomedov win a lot of tenders, including the supply pipes and other piping elements. In 2011, the monopoly gained with Magomedov and his partners part of the shares of Novorossiysk commercial sea port (NCSP). As became known to “Vedomosti”, the former owners received for it about $2.5 billion – almost 80% more of the market. The company Magomedov together with “Transneft” continue to monitor the NCSP, as well as the Baltic terminal in Primorsk.

It would seem, and here Dvorkovich? Will not again dwell on the friendship Magomedov and Deputy Prime Minister since his student days, except to say that, according Slon.ru, “from 2004 to 2008, Mr. Dvorkovich served on the Board of Directors “Transneft”. It was then that the company “Stroynovatsiya”, controlled by Magomedov, began to receive large orders from state-owned companies. For example, replace a 1.2 thousand kilometers of the oil pipeline and participated in the construction of the ESPO pipeline system-1. But the largest project, however, after leaving Dvorkovich of Transneft, was the system of ESPO-2, with a length of 602 km and an estimated cost of 15 billion roubles”. Cooperation structures Magomedov with Transneft today.

I think Magomedov seems clear that in the case of care Tokarev-deserved rest (guilt, first of all, the age – December Tokarev will mark 66 years) and the appointment of a new head of”Transneft” for him may occur a number of difficulties. Still Magomedov was able to correctly use the recurring “Windows of opportunity”. With the arrival of the same to the management company of a new man, as it often happens in a business environment,the previous cooperation can be complicated.

I wonder, do most Dvorkovich on such a bold assumption and can it be beneficial for him? First, more precious “parachute” for a relatively young, but already Mature political heavyweight is hard to imagine. Secondly, the Deputy Prime Minister will continue to indirectly influence the Russian oil industry. This is supported by the fact that in June 2016 the Board of Directors “Transneft” has entered the assistant Dvorkovich since 2012 Darya Vasilevskaya. According to rumors, with some of the members of the audit Committee to conduct a kind of “audit”.

In recent time, the media pays special attention to the situation in the oil industry. So, have been widely discussed the problem of leakage of large volumes of oil transshipment in Russian ports of some.

Paradoxically, no matter how varied the user, and “Transneft” and will exist indefinitely. Who will be the winner and who the loser, time will tell. But it is unlikely that today someone thinks.

Nikita Krichevsky,

doctor of economic Sciences, Professor


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