The Pride of Russia, Tanking Gazprom Seeks Bailout

A symbol of Moscow's resurgence a year ago, the natural gas giant is foundering
By Clay Dillow,  Newser Staff
Posted Dec 30, 2008 9:02 AM CST
The Pride of Russia, Tanking Gazprom Seeks Bailout
Aggressive re-nationalization by Russia's former president Vladimir Putin led to Gazprom's use as a vehicle to acquire other private properties for the state, an action which has led to massive debts.   (AP Photo/ Ivan Sekretarev)

(Newser) – Just a year ago, Russian natural gas titan Gazprom was burning through global competition on its way to becoming the world's largest corporation. Now the state-owned darling of investors worldwide is deep in debt and flirting with a government bailout. A symbol of Russia’s resurgence as a global economic power, the company has tumbled from third to 35th place in global market cap rankings, shedding 76% of its value along the way, the New York Times reports.

As the world’s largest natural gas supplier, Russia enjoyed the lift provided by surging energy prices. But aggressive re-nationalization by former-president Vladimir Putin led Gazprom to pile up debt totaling $49.5 billion, nearly matching the combined amount coming due for Brazil, India, and China in 2009. The 76% drop in value since January compares to an 18% decline at ExxonMobil.
(Read more Gazprom stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X