Becoming a Russian Oligarch After Rebirth
Chapter 473 Russian Gas Industry Shares Company_1

Chapter 473: Chapter 473 Russian Gas Industry Shares Company_1

Wang Ye and Gavriil dined until just past nine at night, discussing a multitude of topics.

Through their conversation, Wang Ye learned much about the Kremlin’s recent priorities, one of which piqued his interest—plans to overhaul the domestic energy industry.

Of course, they couldn’t simply seize privately owned businesses, and companies owned by the oligarchs had to be handled with care to consider international repercussions and the country’s image.

The current plan was to consolidate state-owned enterprises that hadn’t yet been privatized, as well as small businesses operating unlawfully, into a conglomerate controlled by state-owned assets, opening the doors for private investors.

Something akin to United Aviation Group’s model.

The two primary sources of Russia’s energy are oil and natural gas!

Oil was straightforward. The Yukos Group had essentially established a monopoly, accounting for nearly 80% of the nation’s production, with most high-quality oil fields under its control.

The natural gas industry was a different story. In the 90s, Russia established the "Russian Natural Gas Industry Co., Ltd.", controlled by the Federal Asset Management Agency—commonly referred to as "Russian Gas".

This company is truly phenomenal. It’s the world’s most significant natural gas enterprise, accounting for 8% of the nation’s total industrial output and contributing 25% to the national financial budget!

Without overstating, it is the nation’s "money bag" and the lifeline of the Russian economy.

Compared to Yukos, which controls 80% of the nation’s oil production, Russian Gas is even more outrageous, taking up 90% of the national natural gas production!

They are in an absolute monopoly position!

Of this, the state owned about 40% of the shares, with the rest being held by various shareholders, since the company has been listed on the United States and European securities markets.

"So, are you interested in buying some shares in Russian Gas? The dividends are quite substantial," Gavriil asked, raising an eyebrow with a grin.

When it comes to dividends, the company is rather conscientious; every year, it uses its net profit, minus an amount reserved for development, entirely for cash dividends, which are distributed to all shareholders!

Additionally, Russian Gas has a net annual profit of around two hundred billion US dollars...

No matter how you look at it, it’s a top-tier company.

However, after some thought, Wang Ye shook his head, "Thanks, but no. I don’t have enough capital to invest in such a gigantic company right now. There aren’t many places to earn, but there are plenty of places to spend!"

Clearly, Russian Gas might be a good company, but it isn’t suitable for Wang Ye’s current investment target.

He simply didn’t have the funds to acquire shares in Russian Gas...

...

"I hear your uncle has gone to Asia for business and hasn’t returned yet?" Gavriil asked offhandedly.

He was clearly referring to Khodorkovsky, who, after his discussion with Wang Ye at the last board meeting, took Wang Ye’s advice seriously.

Near the end of February, he led a delegation to the three East Asian countries.

The objective, naturally, was to sell oil to Asia, considering China—which Wang Ye particularly emphasized. Khodorkovsky is still in China and hasn’t come back yet.

"Yes, the oil prices have been falling all this year, and my uncle is quite distressed. He went there to negotiate with the Asian countries, hoping to break into their market," Wang Ye said, smiling.

"Was that your idea as well?" Gavriil asked, looking at Wang Ye with interest.

He and Khodorkovsky both deeply understood Wang Ye and knew that he was very optimistic about the future development of China because Wang Ye had emphasized several times on different issues that a certain major Eastern power would see rapid development in the upcoming years!

Wang Ye grinned and casually stated:

"Yes, I am now director of the Yukos Group; naturally, I have to consider the business of the group.

Oil is a hard currency, but the prices fluctuate greatly and are affected by many factors.

Considering the output of the Yukos Group, relying solely on small customers won’t do. We must find a few stable larger clients and sign long-term orders."

Gavriil thought for a moment, then shook his head, saying:

"Although we are bordering China, transporting oil there is not easy, as it requires a major detour.

Compared with the Middle Eastern countries’ oil, we don’t have a price advantage.

You may not know, but our company, Russian Gas, has been negotiating with them for several years, hoping to sign a stable natural gas supply contract, but it hasn’t been successful due to transportation restrictions.

The reason we sell a lot of our energy to Europe is that many countries there are developed and have a stronger demand for energy.

On the other hand, it’s closer, so the transportation costs are lower!"

This was something Wang Ye wasn’t entirely clear about, yet he knew the gas deal negotiations between China and Russia took approximately 20 years to come to fruition.

Moreover, the contract amount was staggering, amounting to 400 billion US dollars!

At the time, it was claimed to be the largest energy order in history...

As for oil, Wang Ye wasn’t sure whether the two countries had signed any super contracts. If there were any, the amount certainly didn’t compare to the natural gas order.

"It’s worth a shot. Having an additional option is always better than one fewer. After all, I’m just a director at the Yukos Group, not the boss. A lot of things aren’t my responsibility to worry about," Wang Ye said, shrugging.

Gavriil chuckled, then asked in jest, "What, you want to be the chairman of the Yukos Group? It’s not impossible, since Khodorkovsky is your close uncle. Seeing as he seems to be grooming you to succeed him."

"No, no... I can’t bear that responsibility. I have enough on my plate as it is, and if I were to take on something as massive as Yukos, I’d probably not have time even to sleep," Wang Ye quickly declined, waving his hands in dismissal.

"That’s not the right way to think about it. With greater ability comes greater responsibility, and you have that ability. Many people would like to see the Yukos Group in your hands in the future. As for the other companies you’re managing, you can just provide professional managers. I don’t think you’re that busy now."

Gavriil’s words implied a deeper meaning.

Wang Ye could only give a bitter smile. He understood that Khodorkovsky genuinely wanted him to take over the Yukos Group—no longer a subtle hint but an outright declaration.

Because Khodorkovsky planned to battle for his "political ideals"...

Similarly, people like Gavriil also hoped to see him at the helm of the Yukos Group. They would feel more at ease, as compared to Khodorkovsky, Wang Ye was easier to "control".

Wang Ye’s reluctance to take over Yukos stemmed from the fact that once he took the reins of the group, it would mean that Khodorkovsky and the Kremlin had officially fallen out!

He would be forced to make an impossible choice...