...Professor Kerem International Business 17 October 2012 Russian International Relations What are the most important differences between international oil and gas markets? How is Russia situated in these markets? International oil and gas markets are vitally important to any nation with these resources. They alone can create many opportunities for jobs, investments, trade, and political reforms. When one of these resources are discovered, it catches the attention of the world because these goods are known as “scarce resources”, and so, the international demand for them are very high. Recently, Russia has tapped a massive amount of gas and oil reserves because as the Soviet Union disintegrated Russia began to plot what would bring them the most revenue to stabilize their economy. According to Journey to Sakhalin: Royal Dutch/Shell in Russia, “As a result; oil and gas dominated Soviet export earnings, reaching as high as 75% of the total.” Meaning that international consumers were willing to pay premium prices for Russia’s resources. However, critics pointed out that Russia failed in tapping potential markets where they could earn more money raising there GDP and possibly helping their economy. One example given is that if Russia’s leading gas firm, Gazprom, decided to tap the Asian markets, they could simultaneously stimulate the Russian/Asian transport industry. Russia is focused more on their gas resource than their oil because it is much more abundant than oil and has a higher...
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...The year 2011 will go down in global corporate history as the year when one of the world’s largest energy companies, BP, and the Russian state company, Rosneft, unsuccessfully attempted to form a strategic partnership on Arctic development. This failure was caused by the contractual and legal objections of the AAR consortium - BP’s partners in the Russian oil company TNK-BP. In 2003-5, BP and the AAR consortium led by three billionaires with Russian connections - Mikhail Fridman, Len Blavatnik, and Viktor Vekselberg - merged their Russian oil corporate assets - TNK, Sidanko, and Onako and their subsidiaries - under the umbrella of TNK-BP.2 This joint venture was established on a 50/50 basis, the operation of which required mutual joint decision making. The partners also signed a shareholding agreement on TNK- BP’s right of first refusal in relation to potential future oil and gas projects offered to BP or AAR in Russia and Ukraine. This agreement was subsequently used by AAR to stop the BP-Rosneft deal in international courts. Unfortunately, this was not the first time that BP had been unable to change the way it conducted its business in Russia. The first example occurred in 2007-8 when BP was reported to be keen on having Gazprom as a partner instead of AAR. This move would have transformed the TNK-BP joint venture into Gazprom-BP. This did not transpire. Second, in the spring-summer 2008, there was a turbulent ‘misunderstanding’...
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........................................................................... ..s.7 ANALYSIS / EARNINGS .................................................................. .... p.8 5: 1 Lens analysis ............................................................... .... p.8 5: 2 Analysis based on Liberalism .......................................... ... ... ..s.9 5: 3 Analysis based Realism .......................................... .. ......... p.10 DISCUSSION .............................................................................. .s.11-12 SOURCE CITATION ................................................................... ... .s.13 INTRODUCTION "Withstand the Russian economy Ukraine crisis?" Http://www.exporttjanster.se/content/t%C3%A5l-den-ryska-ekonomin-ukrainakrisen (Henrik Hjelm, March 2014. Retrieved: 2014-9-24) That there is a conflict between Ukraine and Russia, no one has escaped hearing about. We have therefore decided to write a report on this particular dispute, as we believe that the topic is extremely important and topical. The issue affects not only Russia and Ukraine, but also we in Sweden and all over the world are affected and...
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... Biyash Chakraborty MBA- International Business Email: chakraborty.biyash93@gmail.com University of Petroleum and Energy Studies, Dehradun. (Uttarakhand), INDIA __________________________________________________________________________ Abstract India’s rapid economic growth has made it the second fastest growing energy market in the world. Its domestic and international strategies has produced foreign policy differences with the United States that will require careful management on both sides. India’s basic approach to energy diplomacy has been to develop its supply potential and neutralize its potential competitors, principally China. India’s strategic interest in Iran as its energy partner and then the Iraq crisis are having a negative consequence on its economic prosperity, placing it on crossroads with the US. There is a divide between US and EU about the wisdom and desirability of imposing harsh economic sanctions on Russia. In any such confrontation, EU stands to lose much more than the US, though it can be argued that Russia will be the worst loser. In future, Russia may try to find new potential market for its gas and that could be India. So it is important for India to take its stand on Ukraine crisis carefully without tarnishing its relation with USA. India’s long-term prosperity hinges to some degree on a conflict free neighborhood; that an economically integrated region is in India’s overall security interests. Keywords: oil crisis, energy diplomacy, Ukraine...
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...programme, have intensified concern over the stability of supplies from the Persian Gulf. On the demand side, China’s and India’s skyrocketing energy consumption and their efforts to secure supplies have intensified global competition over scarce hydrocarbon resources. These changes in the landscape of the global energy market, in conjunction with diminishing refinery capacity, shrinking spare capacity and a low level of investment, have driven oil and natural gas prices higher. Currently, the European Union’s oil bill (for imported and domestically produced oil) stands at around €250 billion a year, or roughly 2.3 per cent of gross domestic product (GDP).1 These soaring prices have exerted tremendous pressure on European economies and underscored the need for a common European energy policy. The dispute between Russia and Ukraine over natural gas prices in January 2006 further highlighted the risks of dependence on a few energy suppliers. In early 2005 the Russian state monopoly, Gazprom, announced plans to start applying ‘market rules’ in its gas dealings with former Soviet republics. That meant that buyers would lose the heavily subsidized prices they had previously enjoyed and instead would have to pay similar prices to those charged to west European customers. It also meant that all bills would have to be settled in cash instead of through barter agreements. This new policy was largely seen as a punishment for the Ukrainian President Viktor Yushchenko, who...
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...Ukraine. Starting from dissolution of Soviet Union, these countries went through political and economic movements which cause changes in international business, trade and investment. The Breakup of Yugoslavia and The Dissolution of Czechoslovakia in the early 1990s had shown two different types of political upheavals and conflicts: the situation in Yugoslavia led to the civil war and to the foreign intervention, while a non-violent transition of power in Czechoslovakia, usually called ‘Velvet revolution’, caused the formation of two new states - The Czech Republic and Slovakia. As a result of these changes, the economy of countries was also affected: some people were sure that dissolution would quickly start an era of high economic growth of a new country; some of them faced a problem of economic collapse. Furthermore, there are always the same problems after political movements such as, chronic lack of productivity, fuelled by the country's leaderships' decision to enforce a policy of full employment, long-term fiscal irresponsibility, a failure to take steps to improve the low domestic labor productivity. Consequently, it had a negative impact on economic development, establishment of international relations, creating favorable conditions for business and investment. It is a commonplace now that the economies were at various levels,...
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...institutionalism Relations...
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...Denmark/Greenland, and Russia – see Figure 1 on next page for map) will likely see increased interest in the development of their Arctic resources in the coming decades and will have to begin considering how to address these challenges in order to take advantage of this interest. Each Arctic country has different policies, laws, and regulations regarding oil and gas development and transportation, and these differences will affect how and by whom resources are developed, and how and where they are transported. This paper describes 1) the reasons that energy companies will likely focus more of their attention on the Arctic; 2) the current state of knowledge of Arctic oil and gas resources; and 3) issues that will affect the development of Arctic oil and gas resources including boundary issues, access to resources, environmental restrictions, tax and regulatory issues, transportation challenges, and regional issues. Attractions of the Arctic The Arctic has not been widely explored by oil and gas companies, due to the severity of weather conditions, the high cost of Arctic operations, inadequate technology, and the fact that oil and gas can be produced with greater ease and at less expense in many other parts of the world. Recent trends, however, have begun to mitigate these factors,...
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....................................................................... 2 2 The Federative Republic of Brazil .................................................................... 3 2.1 General information on the Federative Republic of Brazil....................... 3 2.2 Brazil’s connection with the European Union.......................................... 4 2.3 Brazil’s financial situation........................................................................ 5 2.4 Brazil’s imports and exports.................................................................... 6 2.5 Brazil’s leading companies ..................................................................... 9 3 The Russian Federation................................................................................. 10 3.1 General information on the Russian Federation ................................... 10 3.2 Russia’s connection with the European Union...................................... 11 3.3 Russia’s financial situation.................................................................... 12 3.4 Russia’s imports and exports................................................................ 13 3.5 Russia’s leading companies ................................................................. 14 3.6 Conclusion ............................................................................................ 16 4 The Republic of India...
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...* What is Rosneft’s background and key assets? * State owned oil giant * Founded as a result of reorganization and privatization of Russia’s oil industry after the collapse of the USSR * Reorganized instead into an open joint-stock company * Valued between $60 to $80 billion * Rapid expansion and acquisitions * Including Northern oil, exploration and development licenses to several blocks * Growth in crude oil production, rising from 98.6 million barrels in 200 to 148.3 million barrels in 2004 * Was appointed by the Russian government as Russia’s representative in the negotiation of the multitude of production-sharing agreements, which it was signing with major oil producers from all over the world * Acquired Yuganskneftegas unit from Yukos through the Baikal Finance Group * Why does Rosneft want to do an IPO? * To pay off debts * $7.5 billion debt, borrowed from the National Oil and Gas Company of India * $1 billion in Russian capital gains taxes on the IPO itself * What does Rosneft’s owner want out of an IPO? * The Russian government did not want to lose control over the company (and was not sure what share it wished to float) * Wanted the highest possible proceeds for a share * To prevent the losses it had suffered in previous privatization efforts and was highly contentious about what a fair price would be for its stake * What are...
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...INTRODUCTION Open Joint Stock Company Gazprom is the largest extractor of natural gas and one of the largest companies in the world. Gazprom was created in 1989 when the Ministry of Gas Industry of the Soviet Union transformed itself into a corporation, keeping all its assets intact. The company was later privatized in part, but currently the Russian government holds most of the control in its hands. The major parts of Gazprom’s production fields are located around the Gulf of Ob in the Yamalo-Nenets Autonomous Okrug in Western Siberia, while the Yamal Peninsula is expected to become the company's main gas producing region in the future. Gazprom possesses the largest gas transport system in the world, with 158,200 kilometres of gas trunk lines. Major new pipeline projects include Nord Stream and South Stream. In this report, we are going to analyze the International environmental of Gazprom by using SWOT analysis. We will detail the relationship between Gazprom and other neighboring countries; such as Ukraine. We will figure out what’s the benefit for Gazprom based on the International environmental and what will be harmful the Gazprom if there are some disputes. The main reason we chose Gazprom as our research target is, as we mentioned before, that Gazprom is a company which is currently controlled by Russian government. Most of decisions that Gazprom took are showing the attitude of Russian government. As we know, Russia is the biggest country in the World, not only the...
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...subsidiaries taken as a whole. For the purposes of the Annual Report, the lists of subsidiaries and affiliates were prepared on the basis used in the preparation of OAO Gazprom’s consolidated accounting (financial) statements in accordance with the requirements of the Russian legislation. Similarly, the «Gazprom neft Group» and «Gazprom neft» refer to OAO Gazprom neft and its subsidiaries, «Gazprom energoholding» refers to OOO Gazprom energoholding and its subsidiaries, Gazprom neftekhim Salavat refers to OAO Gazprom neftekhim Salavat and its subsidiaries. In this Report “companies investments to which are classified as joint operations” define OAO Tomskneft VNC and Salym Petroleum Development N.V. The Annual Report also contains information related to Gazprom Group’s business activities in the future, based on the forecast and estimates of Gazprom’s management derived from the current situation. Actual results may differ from the said forecast and estimates due to the effect of various objective factors. In the report, a number of Gazprom’s operating and financial results are stated in compliance with the principles for preparing Gazprom Group’s consolidated accounting (financial) statements in accordance with the Russian legislation (consolidated financial statements of Gazprom Group). At the same time, some results of OAO Gazprom and its subsidiaries and...
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...twenty eight member states as of March 2013), it needed more energy sources as energy plays an important role for economic development. Now the European Union is the largest importer of energy (oil and gas) in the world, and the second largest energy consumer. Therefore, member states of the EU need more secure access to energy resources. Beside the North-South and East-West energy corridors, Europe ingests the South-North corridor, connecting it with North Africa and the Middle East. In 2007 Oil and Gas Journal estimated stocks and supplies of oil at 114 billion barrel and natural gas at 13, 9 billion cubic meter. Almost one third of European imported oil comes either from the Middle East or from North-West Africa. Europe pipeline interests in the south are focused exclusively on natural gas. In 2006 Algeria delivered 16, 7% of Europe gas, and it’s considered to be the biggest third land delivers natural gas, including LNG (Liquefied Natural Gas), to Europe. Almost half of the supplies to Europe go to Spain and the rest to Italy and France. The other two important countries in the region producing Gas are Libya and Egypt, they hold together with Algeria a proven reserves of 4, 5% of the world reserves. These three lands can present a reliable long-term alternative to the Russian gas. Starting from 2020 Algeria for example can...
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...Petroleum-Gas University of Ploiesti BULLETIN Vol. LXII No. 4/2010 103-110 Economic Sciences Series LUKOIL’s Market Strategy in Central and Eastern Europe Mihaela Oprea Ciopi Petroleum-Gas University of Ploieşti, Bd. Bucureşti 39, Ploieşti, Romania e-mail: mciopi@yahoo.com Abstract The economic environment has undergone significant development over the past 20 years marked, in particular, by the globalization of the economy and increased competitiveness. The large oil corporations significantly influence national economies and the global economy in general, as a result of their huge financial power and their profit-oriented corporate management, by identifying the most appropriate strategies and the most effective methods of business management . Currently, oil market in Central and Eastern Europe is controlled by three major players: the Austrian OMV, Hungarian MOL company and the Russian company LUKOIL, whose investment strategies and policies contributed to a decisive extent to the development and consolidation of oil industry in the countries in this area, thus in Romania too. In this context, the paper aims to analyze the strategy of developing and consolidating LUKOIL’s position on this market. Key words: strategic alliance, a global energy player, offensive strategy, territorial expansion JEL Classification: M10 Introduction The greatest oil corporations significantly influence national economies and the global economy in general...
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...Belarus Belarus, officially known as the Republic of Belarus, is a landlocked country located in the north-east of Europe and has international borders with 5 countries: Russia, Ukraine, Poland, Lithuania and Latvia. The capital of Belarus is Minsk, a modern international city located in the centre of the country, it is considered modern because it has been destroyed and rebuilt numerous times, most recently after World War 2, when it was almost completely destroyed, also because Belarus an important trade and transport route between Europe and the CIS (Commonwealth of Independent States). The country of Belarus is divided into six administrative districts, each centred around a major city: Brest Region, Homel Region, Hrodna Region, Magileu Region, Minsk Region and Vitebsk Region. After seven decades as a constituent republic of the USSR, Belarus attained its independence in 1991. It has retained closer political and economic ties to Russia than have any of the other former Soviet republics. Alexander Lukashenko has been the country's president since 1994, the country is run through authoritarian means and a centralized economic system, the government also has restrictions on freedom of speech and the press, peaceful assembly, and religion. Cultural trends - Religion: Religion in Belarus is considered a unifying factor since 80% of the population are Eastern Orthodox while only 20% are of other religions. But the Government restricts religious freedom both actively...
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