Oil and the Economy of Russia This book examines the development of the Russian economy from tsarist times to the present through the lens of the oil industry It considers the role of the state, business-state relations, foreign participation, enterprise performance and technology Besides providing much rich detail on the changing nature of the oil industry, the book also puts forward important conclusions, including the fact that in the late nineteenth century private enterprise rather than the state was the principal driver of economic development, and that after the collapse of the Soviet Union incumbent managers were more effective in running their companies than financier entrants, whose main concern was short-term gain Nat Moser has over 20 years’ experience analysing the Russian oil sector from an academic and investment perspective He completed his doctorate at the University of Manchester, and post-doctoral research at University College London and has advised some of the largest foreign equity investors into the sector He is currently a director of two companies working in the field of oil and gas exploration and production BASEES/Routledge Series on Russian and East European Studies For a full list of available titles please visit: www.routledge.com/BASEESRoutledge-Series-on-Russian-and-East-European-Studies/book-series/ BASEES Series editor: Richard Sakwa, Department of Politics and International Relations, University of Kent Editorial Committee: Roy Allison, St Antony’s College, Oxford Birgit Beumers, Department of Theatre, Film and Television Studies, University of Aberystwyth Richard Connolly, Centre for Russian and East European Studies, University of Birmingham Terry Cox, Department of Central and East European Studies, University of Glasgow Peter Duncan, School of Slavonic and East European Studies, University College London Zoe Knox, School of History, University of Leicester Rosalind Marsh, Department of European Studies and Modern Languages, University of Bath David Moon, Department of History, University of York Hilary Pilkington, Department of Sociology, University of Manchester Graham Timmins, Department of Politics, University of Birmingham Stephen White, Department of Politics, University of Glasgow Founding Editorial Committee Member: George Blazyca, Centre for Contemporary European Studies, University of Paisley This series is published on behalf of BASEES (the British Association for Slavonic and East European Studies) The series comprises original, high-quality, researchlevel work by both new and established scholars on all aspects of Russian, Soviet, post-Soviet and East European Studies in humanities and social science subjects 118 Russia’s Economy in an Epoch of Turbulence Crises and Lessons Vladimir Mau 119 Oil and the Economy of Russia From the Late-Tsarist to the Post-Soviet Period Nat Moser 120 The South Caucasus Security, Energy and Europeanization Edited by Meliha B Altunisik and Oktay F Tanrisever Oil and the Economy of Russia From the Late-Tsarist to the Post-Soviet Period Nat Moser First published 2018 by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2018 Nat Moser The right of Nat Moser to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Names: Moser, Nat, author Title: Oil and the economy of Russia: from the late-Tsarist to the post-Soviet period / Nat Moser Description: Edition | New York: Routledge, 2018 | Series: BASEES/Routledge series on Russian and East European studies; 119 | Includes bibliographical references and index Identifiers: LCCN 2017032257| ISBN 9781138242876 (hardback) | ISBN 9781315277509 (ebook) Subjects: LCSH: Petroleum industry and trade–Russia–History | Petroleum industry and trade–Soviet Union–History | Petroleum industry and trade–Russia (Federation)–History | Industrial policy–Russia (Federation)–History | Petroleum industry and trade–Russia (Federation)–Management Classification: LCC HD9575.R82 M667 2018 | DDC 338.2/7280947–dc23 LC record available at https://lccn.loc.gov/2017032257 ISBN: 978-1-138-24287-6 (hbk) ISBN: 978-1-315-27750-9 (ebk) Typeset in Times New Roman by Deanta Global Publishing Services, Chennai, India For my mother and father This page intentionally left blank Contents List of figures List of tables Abbreviations and acronyms Note on measurement Preface ix xi xii xiii xiv Introduction The oil industry: main features and characteristics  Conceptual terminology  Structure, methodology and sources  The late-tsarist oil industry, 1861–1917 Late-tsarist economy overview  11 Late-tsarist oil industry overview  13 Role of the state   16 Foreign participation  29 Monopolies, cartels and business-state relations  33 Technology 40 11 The Soviet oil industry, 1917–1991 Soviet economy overview  51 Soviet oil industry overview  55 Enterprise management  60 Inefficiency of resource use  66 Technology 70 51 The post-Soviet oil industry, 1991–2017 Post-Soviet economy overview  87 Post-Soviet oil industry overview  94 87 viii  Contents The state and the oil industry  99 Business-state relations  102 Foreign participation  108 Enterprise performance  114 Conclusion 130 Appendix Literature review Bibliography Interviews conducted 135 149 155 166 Index 168 Figures 2.1   Russian oil production 1863–1917 2.2   US and Russian oil production 1870–1916  2.3   Russian oil production 1863–1880 2.4   Russian oil production 1877–1916 2.5   US oil production 1877–1916  2.6   Russian oil output in 1890 by producer 2.7   Russian oil output in 1913 by producer 3.1   Soviet GNP 1945–1991  3.2   Soviet oil production 1917–1945 3.3   Soviet oil production 1917–1940  3.4   Geographical distribution of Soviet oil production in 1938 3.5   Soviet oil production 1945–1991 3.6   Soviet oil production 1945–1991  3.7   Geographical distribution of Soviet oil production in 1950 3.8   Geographical distribution of Soviet oil production in 1980 4.1   Russian GDP 1992–2015 4.2   Russian budget balance 1992–2015  4.3   Oil price 1992–2015 4.4   Russian current account 1992–2015 4.5   Russian international reserves 1992–2016 4.6   Foreign direct investment into Russia 1992–2015 4.7   Russian oil production 1990–2015 4.8   Russian oil production 1990–2015  4.9   Russian oil production by company 1992–1999 4.10 Change in production between 1992 and 1999 by ownership type 4.11  Russian oil production by company 1999–2004 4.12 Change in production between 1999 and 2004 by ownership type  14 15 23 24 25 36 37 54 56 57 57 58 58 59 59 90 91 91 92 93 93 96 97 115 116 117 118 158 Bibliography R Ahrend and W Tompson, Fifteen Years of Economic Reform in Russia: What Has Been Achieved? 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Billionaires, and the Kremlin: A Power Triangle That Never Was,” Oxford Energy Comment (Oxford: Oxford Institute for Energy Studies, November 2011) D Yergin, The Prize – The Epic Quest for Oil, Money and Power (New York, NY: Touchstone, 1991) M Zygar, All the Kremlin’s Men – Inside the Court of Vladimir Putin (USA: Public Affairs, 2016) Reference books A V Anikin (ed.), English-Russian Dictionary of Economics and Finance (St Petersburg: The School of Economics Press, 1993) A I Bulatov, Russian-English Dictionary on Oil and Gas, 3rd edition (Moscow: Russo, 2003) C F Conaway, The Petroleum Industry – A Nontechnical Guide (Tulsa, OK: PennWell Publishing Company, 1999) K.E Khalimov, Evolutsiya otchestvennoy classificatsiya zapasov nefti i gaza [Evolution of Classification of Oil and Gas Reserves in Russia] (Moscow: Nedra, 2003) I F Zhdanov (ed.), Russian-English Foreign Trade and Foreign Economic Dictionary (Moscow: Russkii Yazeek, 1991) Interviews conducted Semi-structured interviews, 2006–2008 Frank Duffield, President of Sakhalin Energy; Vice President, Central and Eastern Europe, Russia and Central Asia, Shell Gas and Power (in the mid/late 1990s), Royal Dutch Shell London, 22 March 2006 John Gallivan, Managing Director, Moscow, TRACS-Consult (reserve auditing and oilfield services company) Moscow, 21 June 2006 Peter Levine, Chairman, Imperial Energy Corporation PLC (Russian oil company); Dr Rupert G W Kidd, Chief Operating Officer Moscow, 22 June 2006 Robert (Rab) Speirs, President and General Manager, Harvest Natural Resources, Inc (Russia) [formerly Vice President, Engineering and Construction, Yukos, a major Russian oil company] Moscow, 23 June 2006 and 12 April 2007 Maxim Barskiy, Chief Executive Officer, West Siberian Resources (Russian oil company) Moscow, 13 July 2006 and 19 June 2007 Vakhtang Vardanyan, Senior Manager, LUKoil (major Russian oil company), formerly Chief Financial Officer, SeverTEK (a LUKoil subsidiary) Moscow, 20 July 2006 Michael Urazaev, President, Mogul Management Company (owns the licences to several Russian oil and gas fields) London, 14 February 2007, and Manchester, April 2007 Mark Tolley, Chief Executive, Cadogan Petroleum plc (Ukrainian oil and gas company), former (2001–2004) Technical Director of Sibir Energy plc (Russian oil company) London, 14 February 2007 Alastair McBain, President and Chief Executive Officer, and Shahveer Kapadia, Chief Operating Officer, Arawak Energy (oil and gas company with assets in Russia, Kazakhstan and Azerbaijan) London, 30 July 2007 Stephen D Kirton, Vice President, Technical Services, Urals Energy (Russian oil and gas company) London, February 2008, and Moscow, 15 May 2008 Structured interviews, 2004–2009 Ian Mitchell, Senior Manager, Russia Operations, Halliburton (international oil-field services firm) Moscow, February 2004 Nick Latta, Second Secretary, Commercial, British Embassy Moscow, 22 June 2006 Robert Semenov, Chairman, Promgeotek (oil exploration company), former Head of Works (1979–1995) for Glavmorneftegaz and Kasmorneftegaz (Soviet-era production associations) Moscow, 27 October 2006 Interviews conducted 167 Steve Ridlington, Vice President, Finance and Treasury, and Ruslan Nickolov, Vice President, Economics, Market Research, Investor Relations, TNK-BP (major Russian oil company) Moscow, August 2007 Alexei Trukhin, Director of Sales, Integra, Uralmash (Russia’s largest plant which constructs drilling rigs) Yekaterinburg, Urals, 24 October 2007 Vladimir , Head of Drilling, Krasnoleninsk field, TNK-Nyagan, TNK-BP (major Russian oil company) (surname withheld) Nyagan, West Siberia, 24 October 2007 Yevgeny Shmalko, General Director, CAToil Drilling (oil-field services company) Noyabrsk, West Siberia, 25 October 2007 Mikhail Paschenik, General Director, Gazpromneft-Noyabrskneftegazgeofizika (geophysical company) Noyabrsk, West Siberia, 26 October 2007 Bruce Burrows, Finance Director, JKX (Ukrainian oil and gas company) London, June 2008 Oleg Maximov, Senior Analyst, Oil and Gas, Troika Dialog (brokerage company) Moscow, 13 February 2009 Structured interviews, 1995 Al Shaklett, Energy Consultant, Ernst & Young (international auditing and consultancy firm) Moscow, 21 July 1995 John F Gilan, Director General, Pur River (independent oil company) Moscow, 31 July 1995 Rair R Simonyan, Director, Russian Centre for Investment and Privatization (Russian government agency) Moscow, August 1995 Craig Kennedy, Cambridge Energy Research Associates (international energy consultancy firm) Moscow, August 1995 Larry Bates, Scott-European Corporation (oil-field services company) Moscow, August 1995 Index AAR (Alfa-Access-Renova) 94, 109–10, 124, 125n8, 142, 143 Abramovich, Roman 89, 94, 101, 103, 105, 143 Ageyev, Victor 102 Ahrend, Rudiger 114 Alekperov, Vagit 94, 95, 102, 103, 106, 117, 127n47, 131 Alfa Bank 103, 106 Allen, Robert 54 Amann, Ronald 7, 53, 70 Apsheron Peninsula 13, 15, 42, 85n106 Arctic Circle 112 automobile (car) industry 2, 3, 65, 71, 78, 96 Aven, Pyotr 103, 106, 125n8 Azerbaijan 13, 113, 141 Baku 13–15, 16, 25, 26, 27–8, 30–2, 37–8, 41–4, 46n14, 50n156, 55–60, 64, 73, 76, 78, 140, 150, 152 Balakhany (or Balakhani) 13, 15, 37, 44 banking sector 5, 16, 29, 30, 34, 35–6, 48n100, 49n 119, 88–9, 90, 103, 104, 105–6, 127n51, 145, 151 bankruptcy 16, 94, 107, 109, 129n104, 132, 143 Barents Sea 112, 128n87 Bashkiria 64, 73, 76 Bashkortostan 75, 94, 95, 117 Bashneft 55, 90, 94–5, 108, 114–24, 143, 144, 147, 148 Batumi 16, 27–8, 31, 76, 78, 131 Bazhenov formation, 112 Beeby-Thompson, A 26–7 Berezovsky, Boris 89, 103, 105, 106, 107, 142 Berliner, Joseph 53, 60–2, 65, 70–1, 80, 81n22 Bespalov, Yuri 107 Bibi Eibat 13, 32 Bogdanchikov, Sergei 122 Bogdanov, Vladimir 94, 95, 102, 106, 117 BP (British Petroleum) 94, 109–10, 113, 124, 127n66, 128n67, 132, 142, 143, 152 break–even point (economic cut-off) 69–70, 83n68, 133 Campbell, Robert 63, 65, 69, 70, 74–5, 77, 79, 81n20, 85n106, 151 Caspian and Black Sea Petroleum Company 31, 32, 36, 137 Caspian Pipeline Consortium (CPC) 98 Caspian (Sea) 13, 14, 15, 43, 44, 98, 113, 133, 150, 151 Central Asia 11, 15, 55, 57, 59, 140, 141 Central Department for Oil Transportation and Supplies (Glavtransneft) 79, 97 Central Russia 43, 96, 98 Chandler Alfred, 5, 31 Cheleken 15, 63 Chernogorneft 107, 109, 144 Chernomyrdin, Viktor 103, 106, 126n41, 141 China 41, 99, 109, 112–13, 125n16, 127n63 Chubais, Anatoly 88, 105 coal industry 3, 4, 11, 12, 13, 34–5, 41, 43, 56, 100 continuous distillation 43, 76 Cooper, Julian 40, 45, 53, 70–1 corporate governance 113, 125n7, 151 corruption 6, 34–6, 39, 62, 101, 134 Council of State (State Council) 18, 26, 35 Council of the National Economy (Sovnarkhoz) 52–3, 55 cracking 76–7, 86n124 Crisp, Olga 16, 29, 34–5 Index 169 Davis, Christopher 66 Deripaska, Oleg 89, 95, 143 directional (horizontal) drilling 2, 73, 80, 85n103, 111, 119, 133 Dudley, Robert 109 Duma (Parliament) 106, 110, 142 dynamic efficiency 7, 53 East Siberia 98, 102, 109, 113, 122 Ebel, Robert 69, 70, 73, 75, 76, 151, 153n19 “economics of shortage” 66, 70 economic system(s) 5, 6, 7, 8, 11, 51, 53, 61, 62, 66, 71, 87, 102, 134 economies of scale 3–5, 31, 43 Emba 15, 55, 57, 59, 78, 140 engineering industry 11, 29, 40, 41, 67, 71, 74 Eni 112, 128n67 European Petroleum Company 26, 32, 138, 150 Eventov, L Ia 29, 33 excise tax 19, 25 export access (quotas) 100–1, 111, 130, 131 ExxonMobil (Exxon) 4, 110–11, 112, 128n67 Federal Agency for Subsoil Use (Rosnedra) 99–100 First World War 11, 30 France 12, 13, 27, 29–30, 31, 40, 73, 110, 128n67, 131 Friedman, Mikhail 89, 103, 125n8 Gaidar, Yegor 87, 88, 101, 103, 105, 141, 151 Galicia 2, 26 gas industry 4, 56, 79, 86n146, 87, 92, 94, 100, 102, 103, 106, 107–8, 109, 110, 112, 113, 126n30 & n.41, 128n83, 129n89, 134, 143, 152 Gatrell, Peter 17, 29, 34–5, 41, 45 Gazprom 94, 103, 106, 108, 109, 110, 126n30 & n.41, 128n83, n.87, 142, 143, 147, 148 Gazprom Neft (Gazpromneft) 108, 112, 121–3, 128n83 & n.87, 148 Gazpromneft-Noyabrskneftegazgeofizika 83n55, 167 General Electric 73 Georgia 15, 27, 55, 59, 140, 141 Germany (West Germany) 12, 13, 29–30, 40–1, 57, 60, 71, 73, 78, 79 Gerschenkron, Alexander 16, 28 gold mining 3, 24 Gorbachev, Mikhail 51, 53, 56, 65 Gorodilov, Victor 102, 106 Gorzhaltsan, Yu 23, 149 Gosplan 51, 55, 62 Grace, John D 70, 129n99, 152 Grant, Jonathan A 36 Gregory, Paul 5, 7, 17, 29, 53, 62, 66, 72 Grozny 15, 32, 43, 57, 59, 76, 78, 138, 140 Gubkin, I M 64, 83n54 & n.66 Gubonin, P I 13, 19, 20, 22–3, 36, 39, 137 Gulf of Mexico 3, 112 Gulistan (Treaty of) 13 Gusinsky, Vladimir 89, 142 Gusman, M T 73, 85n103, 150 Gustafson, Thane 65, 70, 114, 151 Gutseriyev, Mikhail 89, 95, 143 Hanson, Philip 53, 54 Harrison, Mark 53–4, 62 Hotelling, Harold hydraulic fracturing (fracking) 2, 75, 86n121, 111, 119 Igolkin, A 23, 149 industrial ministries (branch ministries) 51–3, 56, 62 informal practices 60–3 “institutions” 5–6, 17, 51, 87, 124, 132, 134 intensive and extensive growth 7, 53, 70 International Barnsdall Corporation 73 IOCs (international oil companies) 109–13, 128n67 Italy 71, 79, 128n67 Japan 11, 104, 112 JVs (joint ventures) 9, 101, 109–10, 111, 143, 144, 147, 148, 152 Kalamkarov, V A 70, 73–5, 150 Kara Sea 112 Kazakhstan 15, 59, 78–9, 98, 100, 113, 129n89, 141 kerosene tax 26–7, 28 Khalify Company 23, 41 Khodorkovsky, Mikhail 88, 89, 94, 103, 105–6, 123, 143, 149 Khrushchev, Nikita 52–3, 55, 150–1 Kogalymneftegaz 102, 103, 106 Kokorev, V A 13, 19, 20, 22–3, 36, 39, 42, 137 Komi 81n16 170  Index Kondpetroleum 109, 144 Kornai, Janos 53, 66, 70 Kovykta (gas field) 109 Lazarev, M I and Lianozov, G M 28, 38 Lend-Lease 76, 86n125 Lewis, R A 40, 45 “loans-for-shares” 88–9, 105–6, 108, 116, 132, 142, 145 Lopukhin, Vladimir 103, 141 LUKoil 89, 94, 95, 103, 105, 106, 108, 112–13, 114–23, 125n6, 128n83, 129n102, 141, 144, 145, 147, 148, 166 Maikop (Maykop) 15, 32, 57, 59, 140 Mantashev 13, 31, 32, 43, 49n105, 138 Marvin, Charles 26, 37–8, 42, 150 McCaffray, Susan 35 McKay, John 17, 29, 33, 35, 40–1, 45, 150 Medvedev, Dmitriy 108, 142, 143 Menatep Bank (Menatep) 103, 106, 142, 145 Mendeleev, Dmitrii 18–19, 23, 26, 40, 42–3 MET (Mineral Extraction Tax) 101–2, 126n36 Metropolitan Vickers 73 Mexico 73, 127n63 Miller, Alexey 108, 142 Millward, Robert Mining Administration 18, 19, 22 Ministry of Energy (MoE) 99 Ministry of Finance (Minfin) 19, 25–6, 51, 62, 99 Ministry of Geology (Mingeo) 56, 65, 68, 72 Ministry of Natural Resources (MoNR) 99–100 Ministry of Oil Production 65, 68 Ministry of State Property 17 Mirzoyev, I M 13, 18–19, 20, 21, 22–3, 32, 44, 49n105, 137, 138 monopoly 3–5, 18, 33–4, 35, 36, 38, 39, 98, 100, 126n41, 131–2 “monopoly capitalism” 33–4, 48n89 Muravlenko, Sergei 102, 106 Nardova, V A 32, 34, 38, 149 “natural monopoly” 3, 5, 100 Nelson Complexity 77, 86n136 Nizhnevartovskneftegaz 102 Nobel, Alfred 30 Nobel, Emanuel 49n119 Nobel, Immanuel 30 Nobel, Ludwig 26, 28, 30, 33, 38, 44, 49n119, 50n156, 131 Nobel, Robert 30 Nobel Brothers Petroleum Company 13, 28, 30–3, 34, 36–9, 42–5, 48n75 & n.76, 49n113 & n.119, 76, 131, 133, 137, 150 Norilsk Nickel 105, 106, 125n6 North, Douglass C 5–6, 17 North Caucasus 15, 55, 59, 141 North Sea 3, 112, 128n87 Novatek 108, 128n83 Nove, Alec 53 Noyabrskneftegaz 102 offshore production 3, 73, 85n103, 112, 113, 128n87 OFS (oil-field service) companies 8, 111, 113, 119 “oil generals” 102–4, 105, 118 Ol’, P V 29, 33 “oligarchs” 107, 118, 127n61, 142 Omsk refinery 107, 144 Onaco 94, 142, 144 Owen, Thomas 17, 28, 30, 35–6, 48n100 Paliy, Victor 102 Pennsylvania 24, 41, 42, 44 Perestroika 53 Pershke, S & L 18, 24, 32, 50n156, 149 Persia 13 Poland 34, 79 Politburo 51, 52, 55 Potanin, Vladimir 88, 89, 94, 103, 105, 106, 109, 127n51 principal-agent relations (agency problem) 6–7, 53, 62–3, 72, 133 Prodameta 34–5 Produgol 34–5 property rights 5, 33, 87, 111, 118, 123, 124, 131–2 PSAs (production-sharing agreements) 110–13, 128n75 & n.77, 142, 143 Purneftegaz 102, 107 Putilov Company 36 Putin, Vladimir 89, 107–8, 110, 142, 143 Ragozin, Victor I 18, 22, 26, 37, 42, 149 railways (railroads) 2, 3, 11, 12, 13, 14, 16–17, 27–9, 31, 35–6, 38–9, 40, 43, 44–5, 48n100, 78, 131 recovery rate (coefficient) 68–9 “red directors” 88, 102, 105, 107 Index 171 reserve methodology (classification) 65, 67–70, 83n66, 132 reservoir management 2, 3, 55, 72, 74–5, 109, 119, 128n79 risk aversion 60–1, 64–5 Rockefeller, John, D 31, 33, 38 Romashkino (oil field) 75 Rosneft 89, 90, 94–5, 96, 107, 108, 109–13, 114–24, 128n83, 129n104 & n.106, 142, 143, 144, 147, 148 Rosneftegaz 103–4 rotary drilling 73–4, 85n94 Rotenburg, Arkardy and Boris 108, 128n83 Rothschild family 13, 23, 27–8, 31–2, 36, 43, 131, 137 Royal Dutch Shell (Shell) 4, 32, 37, 110, 112, 113, 128n67 & n.77, 137, 142, 143, 166 royalty tax 26–7, 101 Russian Oil Corporation 31, 32, 37, 49n105, 138 Russneft 89–90, 95, 125n9, 143, 148 Sakhalin 55, 57, 59, 110–11, 112, 113, 140, 141, 142, 143 salt industry 18, 41, 136 Salymn (oil field) 113, 128n77 Samotlor (oil field) 75, 99 sanctions (on Russia) 90, 93, 112–13, 128n83 & n.84, 133, 143 Saudi Arabia 1, 9n2, 127n63 Sechin, Igor 108, 122, 128n83, 143 Second World War 53, 59, 60, 64, 66, 76, 79 Senate 18, 23–4 Shafranik, Yuri 103, 106 shale oil 2, 73, 85n103, 112, 133 shareholder rights 112 shortage (of inputs) 66, 70, 73, 150 Sibneft 94, 101, 105–6, 107, 108, 113, 114–21, 125n6, 142, 143, 144, 145, 147 Sibtrub 97 Sidanco 94, 105–6, 107, 109, 125n6, 142, 144, 145, 147 Sistema 90, 94, 143 Sivak, Anatoly 106 Slavneft 94, 114–23, 142, 144, 147, 148 Smolensky, Alexander 88 Spulber, Nicholas 16 Standard Oil 30, 31, 33, 38–9, 131 “state capture” 107, 127n61 State Commission on Mineral Reserves (GKZ) 65 State Committee for the Management of State Property (GKI) 88 state security service (FSB/KGB/OGPU) 55, 81n16, 127n66 Statoil 112 steel (industry) 3, 11, 12, 13, 29, 35, 40, 41, 56, 62, 71–2, 74, 77, 78–9, 82n43, 85n110, 86n145 Steinman, I A 19 Stevens, Paul “strategic” fields 123, 127n65 Stuart, Robert C 5, 7, 29, 53, 66, 72 Subsoil Law 99–100 Surgutneftegas 102, 112, 144, 145 Surgut (Surgut Holding) 94, 95, 96, 105, 108, 114–23, 128n83, 129n102, 141, 144, 145, 147, 148 Sutton, Anthony 70, 71, 73, 80, 86n125, 151 Tagiyev, Z 13, 20, 21, 23, 31, 32, 36, 137 Taneco 96 Tatarstan 73, 75, 79, 94 Tatneft 94, 96, 112, 114–23, 144, 147, 148 tax-farming 18, 19, 136, 137 Texas 3, 24, 75 textile (cotton) industry 11, 12, 13, 16 Tiflis Commission 19 Timchenko, Gennady 108, 128n83 TNK-BP 74, 94–5, 108, 109–10, 113, 121–4, 127n66, 129n106, 142, 143, 148, 167 TNK (Tyumen Oil Company) 94, 104, 106, 107, 109, 114–21, 142, 144, 147, 152 Tolf, Robert 48n75, 150 Total (Total S A.) 110, 112 transaction cost 5–6, 33 transfer pricing 101–2, 112, 133 transformation cost Transneft 97–9, 100–1, 108, 125n22, 128n83, 150 Trofimuk, A A 64, 72, 83n54, 150 Tuapse 76, 78, 96 Tuimazy (oil field) 64, 75 turbodrilling 73–4, 80, 85n94, 133, 150 Turkey 27 Turkmenistan 15, 55, 57, 59, 63, 100, 140, 141 Tyumen 73, 103 Ufa (refinery complex) 76 UK (Great Britain) 12, 13, 17, 26, 29, 32, 41, 73, 76, 78, 109, 111, 128n67, 138, 150 Ukhta-Pechora 55, 57, 59, 140, 141 172  Index Ukraine 41, 55, 59, 79, 90, 92, 93, 112, 140, 141, 143 Uneximbank 103, 106, 145 Universal Oil Products Company 76 Urals 8, 40, 71, 79, 96, 98 US (America) 1, 2, 8, 9n2, 12, 15, 18, 24–6, 33, 38–40, 41–5, 50n156, 69, 71, 73–80, 104, 112, 125n16, 127n63, 128n67, 130, 131, 133, 143, 151 Uzbekistan 100 VNK (Eastern Oil Company) 142 Volga–Urals 55, 57–60, 63–4, 66, 72–3, 76, 79, 98, 113, 114, 118, 141, 150, 151, 152 Vyshnegradskii, Ivan, 26, 48n100 waste (of inputs) 26, 43, 53, 66, 69, 132 waterflooding 74–5, 80, 85n113 & n.119, 111 West Siberia 3, 8, 55, 56, 59, 60, 64, 74, 75, 79, 83n55, 96, 97–9, 103, 106, 111, 112, 113, 114, 117, 118, 128n77, 141, 152 Witte, Sergei 11, 13, 29 workers (labour) 14–15, 62, 77, 88, 104, 130 Yeltsin, Boris 87, 88–9, 103, 105, 110, 141, 142 Yevtushenkov, Vladimir 90, 94–5, 124, 143 Yuganskneftegaz 94, 102, 122, 129n104, 143, 144 Yugansk (oil production enterprise) 65 Yukos 64, 69–70, 89, 94, 105–6, 108, 113, 114–23, 125n6, 129n102 & n.104, 141, 142, 143, 144, 145, 147, 148, 149, 166 Zarubezhneft 108, 111 ... comparisons between the post- 1945 part of the Soviet period and post- Soviet periods Most of the expatriates arrived in Russia towards the end of the Soviet period in the late 1980s and in the early 1990s.. .Oil and the Economy of Russia This book examines the development of the Russian economy from tsarist times to the present through the lens of the oil industry It considers the role of the. .. Turbulence Crises and Lessons Vladimir Mau 119 Oil and the Economy of Russia From the Late- Tsarist to the Post- Soviet Period Nat Moser 120 The South Caucasus Security, Energy and Europeanization