Company Characteristics
Gazprom is a vertically integrated company which dominates both upstream and downstream activities. It owns all main gas-processing facilities in Russia, operates the country's high pressure pipelines and has (since 2006) a legal export monopoly. Other natural gas producers, such as Russia's second largest gas company Novatek, are forced to use Gazprom's facilities for transmission and processing.
At the end of 2008, Gazprom had 221.300 employees in its major gas production, transportation, underground storage and processing subsidiaries. Of this, 9.5% were management, 22.9% were specialists, 63.4% were workers and 4.2% were other employees.
Gazprom belongs to the so-called national champions; a concept advocated by Russian president Vladimir Putin, in which large companies in strategic sectors are expected not only to seek profit, but also to advance Russia's national interests. For example, Gazprom sells gas inside Russia considerably under the global market price as a form of subsidy to the public. However, this lower price also allows Gazprom to undercut competition while presenting an image of advancing Russia's interests.
The company also controls assets in banking, insurance, media, construction and agriculture.
In 2008, Gazprom's activities made up 10% of the Russian GDP.
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