German gas deal with private Russian gas supplier

Newsletter 2012/07/18 – Fostering Relationships

BERLIN/MOSCOW (Own report) – The southern German energy company EnBW
has sealed a landmark deal with a Russian natural gas supplier. EnBW
did not name the company, with which it concluded a 600 billion Euro
gas supply contract, but business circles confirmed that the deal has
been made with Novatek, which is the second largest Russian gas
producer, after Gazprom and hitherto almost unknown in the West.
Novatek’s main shareholder, Gennady Timchenko, is said to be a close
companion of President Vladimir Putin and a member of the president’s
inner circle. Observers view EnBW partner Novatek’s rapid rise to be
the outcome of power struggles within the Russian establishment and
Putin’s closest companion’s striving to secure a larger share of the
yields from the sales of resources. At the same time, serious
allegations of corruption have been raised against EnBW. According to
a former business partner, the German energy company, had made false
accounts of at least 130 million Euros to “foster relationships” in
Russia. This had become necessary after he had to call off an initial
Russian natural gas deal in 2002 under pressure of EnBW shareholder
Electricité de France (EDF).

By piotrbein