Channels, Fall 2018

Page 104 Thompson • Seeing Green energy resources are predominantly located in the Urals Federal District and near the Barents Sea. Thus, over 80% of the natural gas in Russia is within the Arctic Circle (Vavilov, 2015). The majority of the population of 142,257,519 is found in the western end of the nation. The Russian Federation is a semi-presidential federation with a president who appoints the premier and ministers in the government cabinet. The legislative branch consists of two members from each administrative unit chosen through a mixed electoral system (CIA, 2018). Initial economic planning of Russia’s natural hydrocarbon resources began under the Soviet Union with oil explorations in the Caspian region in the 1950s followed later by the development in western Siberia (Belyi, 2015). Gazprom controls one-sixth of the world’s reserves of natural gas and is one the largest NOCs in the world, being the third largest publically traded company in 2008. In 2012, the company accounted for 8% of the Russian GDP, roughly $161 billion. The company was formed in 1989 as a replacement for the Soviet Ministry of Gas Industry. Gazprom was initially granted full control over domestic gas production, but in 1990 and 1994 experienced some privatization and became a joint-stock company. The Russian government still holds the majority of the shares and is the authoritative voice in determining Gazprom’s long-term strategies. Gazprom primarily exports to Europe, specifically the former USSR and former Soviet countries, because of the large inflexible pipeline network developed during the era of the Soviet Union (Vavilov, 2015). US Army Captain Alexander Ghaleb (2011) observes that the energy sector and natural gas are at the center of Russian diplomacy and that president Putin seeks to use the nation’s natural resources to achieve the national strategy. Map 1: Gazprom Group’s gas business development; Map taken from Gazprom (2018) Case 2: Brazil and Petrobras