Wheel of fortune : the battle for oil and power in Russia

The world's largest exporter of oil is facing mounting problems that could send shock waves through every major economy. Gustafson provides an authoritative account of the Russian oil industry from the last years of communism to its uncertain future. The stakes extend beyond global energy security to include the threat of a destabilized Russia. The Russian oil industry-the world's largest producer and exporter, providing nearly 12 percent of the global supply-is facing mounting problems that could send shock waves through the Russian economy and worldwide. Wheel of Fortune provides an authoritative account of this vital industry from the last years of communism to its uncertain future. Tracking the interdependence among Russia's oil industry, politics, and economy, Thane Gustafson shows how the stakes extend beyond international energy security to include the potential threat of a destabilized Russia. Gustafson, a leading consultant and analyst of the politics of energy in the former Soviet Union, draws on interviews with key players over the course of two decades to provide a detailed history of the oil industry's evolution since the breakup of the Soviet Union. At its center is the complex and fraught relationship between the oil industry and the state, which loosened its grip under Yeltsin only to tighten it again under Putin. As oil becomes harder to find and more expensive to produce and deliver, Gustafson warns, Russia's growing dependence on revenue from oil exports, along with its inefficient and often-corrupt management of the industry, is unsustainable. A rich but troubled Soviet legacy, the conflicting ambitions of politicians and industry oligarchs, and the excesses of capitalism Russian-style threaten to lead Russia to an impasse. Involving the oil industry in the country's modernization agenda and remaking its relationship to the state, Gustafson argues, is Russia's best path toward a stable economy and a safer world The Russian oil industry is facing mounting problems that could send shock waves through the Russian economy and worldwide. This book provides an authoritative account of this vital industry from the last years of communism to its uncertain future. Tracking the interdependence among Russia's oil industry, politics, and economy, the author shows how the stakes extend beyond international energy security to include the potential threat of a destabilized Russia. The author draws on interviews with key players over the course of two decades to provide a detailed history of the oil industry's evolution since the breakup of the Soviet Union. At its center is the complex and fraught relationship between the oil industry and the state, which loosened its grip under Yeltsin only to tighten it again under Putin. As oil becomes harder to find and more expensive to produce and deliver, Russia's growing dependence on revenue from oil exports, along with its inefficient and often-corrupt management of the industry, is unsustainable Contents Introduction 1. The Breakup: The Soviet Oil Industry Disintegrates 2. Riding Chaos: The Battle for Ownership, Money, and Power 3. The Birth of the Russian Majors: LUKoil, Surgutneftegaz, and Yukos 4. Worlds in Collision: The Foreigners Arrive in Russia 5. The Russian “Oil Miracle”: 1999– 2004 6. The Brothers from Saint Petersburg: The Origins of Putin’s State Capitalism 7. “Chudo” Meets “Russian Bear”: The Yukos Affair 8. Russia’s Accidental Oil Champion: The Rise of Rosneft 9. Krizis: The Rude Awakening of 2008– 2009 and the Russian Oil-Tax Dilemma 10. Strong Thumbs, Weak Fingers: How the State Regulates the Oil Industry 11. The Half- Raised Curtain: The Foreign Companies as Agents of Change 12. Three Colors of Oil: The Coming Crisis of Oil Rents 13. Looking Ahead: Oil and the Future of Russia; Russia and the Future of Oil Notes Bibliography Acknowledgments Index