ABSTRACT
The chapter analyses Gazprom and shows how it has been used to cultivate dependence on Russia in the energy sector of other post-Soviet states. The chapter discusses limitations on state access to Gazprom before 2001, as well as the importance of Gazprom’s formal and informal rent streams in the state budget, and for political stability. Increasing state access to the company was central to the restoration of state capacity. In the mid-2000s, the use of Gazprom as a foreign policy tool was combined with a business strategy to commercialise relations with post-Soviet states. This appeared to serve both the state and Gazprom well. Over time, however, the targeted states balanced Russia and Gazprom, serving as an instructive example of the limits to energy power.
