Putin's siloviki consolidating ....

Russia's Minister for Natural Resources, Yury Trutnev has his sumptuous offices across the road from Moscow Zoo and must be keenly aware of the nature of the food chain. Subsequent to a fascinating interview in the Moscow Times (a Financial Times / Wall Street Journal newspaper) Vladimir Litvinenko rector of the St Petersburg State Mining Institute (whose alumni figure highly in Putin's pantheon of energy mandarins) has made a bareley concealed bid for his job. He is also a powerful force on the new Energy Commission.

He didn't support of Trutnev's nomination two years ago, in March 2004, when the Minister of Economic Development German Gref, and the controlling shareholder of LUKoil, Vagit Alekperov, supported putting Trutnev, an oilfield engineer by training, the provincial governorship of the central Russian region of Perm, and putting him in charge of policing the 16,000 or so licences that have been issued since 1991 for Russia's oil, gas, and other mineable resources.

Litvienko is quoted: "There was a time when salt was the most important resource in the world. Then it was metal of any kind, then later it became gold. In the specific circumstances the world finds itself in today, the most important resources are hydrocarbons. They're the main instrument in our hands -- particularly in Putin's -- and our strongest argument in geopolitics. A dramatic change has taken place in the world in major energy companies' strategy and understanding, and there is an analogous situation in Russia. Instead of simply extracting resources and selling them at the highest possible price, modern energy giants ought to invest in every link of the energy chain, from geological surveys to electricity generation."

Watch this space. Western oil and mineral exploreers, extractors, engineers, will be sitting up and taking note as their access to oil, gas and minerals becomes more difficult - BP are already having ahrd time in Sakhalin after spending squillions...

In the rather brutal way these oilmen and oligarchs work, the Zoo's Polar bears may be finding some tasty food in their pool soon. Vide LUKoil's rather curious past ....

For previous posts on this subject go to..

Tuesday, May 2
Putin's geo-political jig saw puzzle continues to take shape Pt. 34

Thursday, February 16
Putin's team consolidates