Putin's decision to place the energy industry of Russia under government control is most clearly represented by the nationalization and consolidation of key energy companies, particularly in the oil and gas sectors. A significant moment was the 2003 Yukos affair, where the Russian government took control of Yukos Oil Company, which was one of the largest oil companies in Russia, by arresting its CEO, Mikhail Khodorkovsky, and ultimately dismantling the company. This event marked a shift toward greater state control over energy resources.
Additionally, the creation of state-owned entities like Gazprom and Rosneft, which dominate the natural gas and oil markets respectively, exemplifies this trend. Under Putin's leadership, these companies have been consolidated to ensure that the Russian state maintains a significant grip on energy production, exportation, and pricing, thereby using energy resources as a tool for both domestic policy and foreign relations. This strategy is seen as a way to enhance state revenues, assert control over strategic resources, and cement Russia's position in global energy markets.
1 answer