Becoming a Russian Oligarch After Rebirth
Chapter 631: Strangulation_1

Chapter 631: Chapter 631: Strangulation_1

After the group photo, the young girls left gleefully, their hearts blooming with joy.

After all, having an opportunity to take a photo with a big shot like Mikhail might be a once in a lifetime thing.

Besides, Mikhail has become one of the top figures, becoming the Deputy Speaker of the Duma at such a young age.

Maybe in a few years, he could rise even higher. It’s mind-boggling!

In the future, they could brag about this photo to their boyfriends, even their children, and grandchildren...

Wang Ye and Rossiyana hadn’t left the hall when Aleksey quickly caught up with them from behind.

"Misha, wait for me. I’ll ride with you back, there’s something I need to discuss with you."

Wang Ye nodded in agreement. Naturally, it wasn’t a problem.

... ...

Below the stairs, the fleet of cars was already stationed and had started their engines.

A row of over ten black Land Rovers created quite an impressive scene, and anyone could tell this was the transportation of some Big shot.

In contrast, Aleksey’s vehicle was somewhat shabby.

It was just an average BMW 7 series and it was already a bit outdated, not the latest model, and it didn’t even have flashing lights on top.

Aleksey spoke to his driver for a moment, telling him to follow Wang Ye’s convoy, and then boarded the same car as Wang Ye.

Waving goodbye to the ambassadors, the convoy slowly pulled out of the embassy and onto the main road.

Inside the car, Aleksey and Wang Ye sat in the back for easier conversation, with Rossiyana in the co-driver’s seat.

They casually chatted about the evening’s dinner, not in a hurry to get to the main topic.

Aleksey looked a bit worn out. It seemed that his job as Minister of Energy was putting a lot of stress on him.

After a while, Wang Ye, seeing Aleksey had not yet brought up the main topic, smilingly said: "Go ahead and say it, we’re old friends. There’s no need to hesitate."

Aleksey paused, hesitated a bit and looked a bit serious.

He began: "Recently, some people in our department have been calling to withdraw the energy export rights from some private companies."

Upon hearing this, Wang Ye furrowed his eyebrows.

To withdraw the energy export rights of private companies, what did that mean?

Could it be aimed at... Yukos!

Seemingly catching Wang Ye’s guess, Aleksey nodded:

"You guessed right. Currently, the Russian gas industry’s export rights are basically all in the hands of Russian Gas Industry Group, a state-owned companies, which means the natural gas industry is monopolized by the state enterprises.

In the energy industry, private enterprises have the largest share in the oil industry.

Among them, Yukos Group alone occupies about 80%, state-owned companies practically don’t have a say.

Although Yukos holds a huge advantage in oil fields and production, nobody can compete with it, and without any legal grounds, you can’t touch them.

But the oil export rights are granted by the Ministry of Energy, and they’re granted for a fixed period.

Yukos Group’s oil export rights are due to expire by the end of this year..."

After listening to Aleksey’s explanation, Wang Ye finally understood what the problem was.

In the oil industry, Yukos currently has a monopoly, with both production and sales occupying 80% of the whole of Russia, and the rest of the oil companies combined only make up the remaining 20%.

Supposedly, even if someone wanted to make a move against Yukos, they would have to think twice.

After all, there is international impact to consider, private property is inviolable!

However, as Aleksey just mentioned, if you don’t touch Yukos Group’s assets, but aim to restrict its export rights, that would be a big issue!

Oil export rights are authorized by the Ministry of Energy.

That means, only with the nation’s consent can your oil company sell its oil to the whole world and gain huge amounts of US dollars.

But if the state finds an excuse to cancel your company’s export rights, what consequences would that bring?

At that time, even if Yukos had many oil fields and produced much oil, it could only sell it within Russia and not a single barrel could be sold abroad!

Want to export?

There could be negotiations. You could sell the oil to some specified companies, and then have those companies resell it abroad. Wouldn’t that work?

As for the price, maybe the government crude oil is fifty US dollars a barrel, but those companies might offer Yukos twenty dollars a barrel.

What, you say twenty dollars a barrel is below cost and you’d rather shut down an oil field than sell them?

Fine, they give you thirty dollars a barrel, allowing you to earn a bit...

With such a stranglehold, Yukos Group would have a hard time!

Wang Ye massaged his face with both hands, feeling a bit of a headache.

Why can’t things calm down for a few days? Yukos Group has been quite obedient lately, not doing anything outrageous.

After reaching an agreement on Sino-Russian oil and gas cooperation, Yukos Group has been focusing all its energy on oil production and pipeline construction, devoted to making money without causing any further disturbances.

Even Khodorkovsky, over the past period has refrained from speaking out of context, during a few interviews with the TV station, he only spoke about energy and business, and remained quiet about politics.

But the trees long for peace, yet the wind does not yield!

Yukos Group wants to keep a low profile, but some people won’t allow it...

... ...

In fact, Wang Ye also understands. He doesn’t think there are people intentionally causing trouble, stubbornly clinging to Yukos Group.

At his position, he sees more than the average person, naturally he looks at things from a different perspective.

Actually, if Wang Ye were in that position, he might have to consider doing just the same.

After all, the government’s finances are really difficult!

The Economic Committee, which he is part of, is in charge of approving the government’s annual budget, so they know the financial situation very well.

During the budget approval meeting at the beginning of the year, Wang Ye was rather dismayed looking at the budget table submitted by the government departments.

The country is really in poverty!

Just take free medical care for all as an example.

It sounds great in theory, healthcare and medication are free.

But the problem is, there are only so many doctors and nurses in public hospitals, and with a shortage of manpower, appointments need to be made in advance.

It’s fine for headaches and fevers, but if someone needs surgery, there’s going to be a wait.

Perhaps, you might even ’pass away’ before your turn for surgery comes...

In the end, it comes down to a lack of budget.

Without money, hospitals can’t hire more doctors, without money, it’s not possible to provide better and more convenient health services!

This is just a microcosm, other aspects like the Police System’s budget, even the ministry of defense’s budget, are subjected to as many cuts as possible.

When the Economic Committee was approving the government’s annual budget, Grezlov suggested a requirement.

That was, each member must identify at least one area of the budget to cut. The total budget had to be reduced by at least twenty percent...