Shadow of Soviet Union still haunts Gazprom

Published November 21, 2006

NOYABRSK (Russia): When Russian natural gas giant Gazprom paints its own portrait, the accent is clearly on the future. Television ads for the world's largest gas producer feature a young girl singing in a wintry Russian park, imagining herself becoming a great vocalist.

A boy on a lonely urban basketball court dreams of a radiant future.

“When dreams become reality,” runs one of the company's new slogans. Then another: “We make the world better.” It is a far less menacing picture than many in the West have of the company, which sent shivers through Europe during a cold snap in January by cutting gas supplies to Ukraine during a price dispute, leading to supply shortfalls across the continent.

But deep in the Siberian countryside, in the oil and gas town of Noyabrsk, it is clear that the bright new image Gazprom is attempting to make for itself still has shades of the Soviet past.

This city of 110,000, which is plunged in winter nine months out of 12, sprung up only 30 years ago to house oil and gas workers.

The streets still bear names like Lenin and 60 Years of the USSR, but where buildings once bore slogans singing the glories of socialism, they now extol the achievements of Gazprom and Sibneft -- formerly the chief oil asset of billionaire Roman Abramovich, now a Gazprom holding renamed Gazprom Neft.

Throughout the city, giant figures painted on the sides of buildings celebrate the landmark extraction by Gazprom's local branch of one trillion cubic meters of gas, recalling the obsession with the record-breaking production targets of the Soviet five-year plans.

Gazprom also continues its Soviet practice of financing local schools, as well as a sports complex, ski resort, church and mosque.

“We help out where the administration doesn't have the means,” said Valery Minlikayev, chief engineer of Gazprom branch Noyabrskgazdobycha (NGD).

In touting Gazprom to visiting foreign journalists, Minlikayev followed the lead of the company's new ad campaign in playing down the weight of the past and playing up world-beating superlatives.

“There has never been a company like Gazprom before, and there won't be another for a long time to come,” Minlikayev said.

The engineer praised Gazprom's unique system of pipelines as the longest and most powerful in the world, stretching a total of 155,000 kilometres, as well as the company's vast underground network of gas storage units to cover emergencies.

“The power of Gazprom, both technical and financial, is what guarantees future deliveries not only for Russia, but for Europe and other countries,” Minlikayev said, repeating a mantra of reassurance heard as frequently from the Kremlin as from Gazprom representatives.

But reminders of the past are never far in Noyabrsk, including the apparent belief -- fifteen years after the fall of the Soviet Union -- that foreign journalists are best not left alone.

It is perhaps no surprise that Gazprom security staff in ties and fur hats accompanied journalists every step of the way on a tour of production sites.

But taking a ride into town later in the day turned out to be just as sensitive.

“You'd like a taxi into town? That's impossible, you need a permit,” said a stunned reception clerk at the hotel Rossiya adjoining NGD headquarters.

“Security hasn't agreed to it,” confirmed a visibly embarrassed Gazprom press spokesman.

Asked whether the security in question was the federal security service (FSB, ex-KGB), the spokesman gave an equally embarrassed “no”. Noyabrsk may only be 30 years old, but old habits, it seems, die hard.

Key Asia-Pacific leaders called for an urgent resumption of stalled global trade talks but struggled for consensus on North Korea as they wrapped up their summit Sunday in communist Vietnam.

After morning prayers at a Hanoi church, US President George W. Bush met Chinese President Hu Jintao to try to persuade Beijing, the North's closest ally, to ramp up the pressure on Pyongyang over its nuclear programme.

“China is a very important nation, and the United States believes strongly that, by working together, we can help solve problems such as North Korea and Iran,” Bush said.

The 21 Asia-Pacific Economic Cooperation (APEC) leaders had yet to agree on how to convey their concerns over North Korea, with a draft of the final summit statement making no direct reference to the nuclear standoff.

US officials say they are confident the Pacific Rim heads of state and government meeting in Hanoi for two days of talks will agree a statement calling on Pyongyang to dismantle its nuclear weapons programs.

But Russian Foreign Minister Sergei Lavrov warned the international community not to push Kim Jong-Il's reclusive regime “into a corner”.

Efforts to break down barriers to free trade more easily won support from Apec leaders, who issued a separate communique on Saturday calling for a quick relaunch of World Trade Organisation (WTO) talks, which broke down in July.—AFP