Gazprom Corporation is among the largest players in the Russian and global economies. How is the management structure of this corporation organized? In which cities does Gazprom operate?
Company Overview
Before considering what constitutes the organizational structure of Gazprom, we will study the basic information about the company.
Gazprom has traditionally been regarded as a global energy corporation. Its main areas of activity:
- mineral exploration;
- fuel production;
- gas transportation;
- processing and sale of fuel.
In addition, the corporation also produces and sells heat and electricity. Gazprom has at its disposal the world's richest natural gas reserves. The value of the corresponding reserves is about 18% of the world and 72% of the Russian. In turn, if we talk about gas production, the corporation accounts for about 14% of its global volumes and 14% - from Russian ones.
The company is actively developing projects in vast territories - on the Yamal Peninsula, on the Arctic shelf of Russia, in Siberia, in the Far East. Localities whose economy is largely based on capacities owned by Gazprom - Urengoy, Astrakhan, Nadym, and many others. Actually, the gas industry may be one of the city-forming in these settlements.
Gazprom has at its disposal a well-developed transport and industrial infrastructure. The company is actively developing and processing industries. Gazprom’s capabilities make it possible to almost completely satisfy the domestic demand of the Russian economy in natural gas.
In addition, Gazprom has branches abroad. The activities of these structures are also largely associated with the exploration and production of fuel. The corporation supplies gas to both the Russian and foreign markets.
The corporation is one of the key players in the European fuel market. The largest projects of Gazprom to develop fields abroad are being implemented in Venezuela, India, Algeria. The managers of the Russian corporation are actively interacting with colleagues on a wide range of issues: investing, implementing joint projects, exchanging experience regarding the use of fuel production and delivery technologies.
In Russia, Gazprom owns the Unified Gas Supply System. Its total length exceeds 168 thousand km. In fact, the company is the only producer and exporter of liquefied gas in the Russian Federation.
Gazprom was founded as a public company in 1989. Its turnover in active periods of capitalization was recorded in the values of about 3.9 trillion rubles.
The city in which the main office of Gazprom is located is Moscow. The largest corporation structures are also located in St. Petersburg. It is known that the main office of Gazprom is planned to be relocated to the Northern capital in 2018.
history of the company
It will be useful to get acquainted with the basic facts from the history of the company.
In the middle of the 20th century, a number of large gas fields were discovered by Soviet specialists in Siberia, the Urals, and the Volga region. They began to be mastered quickly, and, as a result, in 1980 the USSR became one of the largest countries in the world in the field of gas production.
In 1965, the Ministry of the Gas Industry was established in the USSR. He was in charge of mineral exploration, fuel extraction, its delivery and sale to consumers. In August 1989, this department was transformed into a business entity - the Gazprom concern.
In 1993, it was renamed into RAO Gazprom. The ownership structure of a corporation has changed significantly over time. So, in the 90s a significant part of the corporation's shares was sold as part of the privatization mechanism. By 2004, the state owned a 38.7% stake in Gazprom. In addition, the Russian Federation had a majority in the company’s Board of Directors. Subsequently, the share of the state was increased to an indicator exceeding 50%.
In 2000, the corporation was actively increasing its turnover. In 2008, in terms of capitalization, it was among the top 3 largest global businesses. In 2009, Gazprom launched the first liquefied natural gas plant in the Russian Federation. Actively developed the European business line. So, in 2012, the company launched the second branch of the Nord Stream highway. Soon, Gazprom officially launched production at one of the largest gas fields - Bovanenkovsky.
In May 2014, Gazprom and the Chinese CNPC Corporation signed a major gas supply contract to China. The contract price was $ 400 billion. The agreement is designed for 30 years.
Company owners
Who is the owner of Gazprom? The corporate ownership structure has the following features.
The main shareholder of the corporation is the Federal Property Management Agency, which represents the state in this case. This agency - in fact, the country - owns a 38.373% stake in Gazprom. The next largest shareholder of the corporation is The Bank of New York Mellon. He owns 26.955% of the corporation's securities. Rosneftegaz owns a 10.74% stake in Gazprom. The Rosgazification company has a 0.889% stake in the capital structure of the gas corporation. Other persons own 23.043% of the company's shares.
One way or another, the state owns 50% plus 1 share of Gazprom Corporation. The management structure of the company is as follows.
Corporate Governance: General Meeting of Shareholders
The supreme governing body of the company is the General Meeting of Shareholders. Its formation is carried out annually. In addition, extraordinary General Meetings are possible. The right to vote on them is held by the owners of ordinary shares.
All owners of the relevant type of securities, independently or through a representative, may exercise the right to participate in the General Meeting. An event of the appropriate type shall be deemed competent if the attendance of shareholders who collectively have more than half of the votes is ensured.
The competence of the general meeting is presented, in particular:
- a change in the provisions of the Charter of the company;
- the formation of annual reports ;
- the definition of the auditor;
- distribution of income;
- selection of members of the Board of Directors, as well as the Audit Commission;
- making decisions on changing the management structure of the company;
- making decisions on changing the amount of the authorized capital of Gazprom.
General management of the corporation is carried out by the Board of Directors. It will be useful to study its features.
Corporate Management: Board of Directors
The activities of the Board of Directors of a corporation are regulated by a separate Regulation. The considered internal corporate structure of Gazprom resolves business development issues if they are not within the competence of a higher corporate governance body - the General Meeting. Moreover, among the relevant competencies is the election of members of the Board of Directors. This procedure is carried out annually.
The management structure under consideration is headed by the Chairman of the Board of Directors of Gazprom. The main competencies of the relevant authority:
- approval of the corporation budget for the year;
- development of investment programs;
- making decisions on the formation of general meetings;
- The establishment of the executive bodies of the corporation;
- making recommendations on the amount of dividends to shareholders.
If we talk about the executive structures of the company, the main one is the Management Board. We study its features in more detail.
Gazprom Management: Management Committee
It may be noted that the Gazprom Management Committee is a structure that bears the status of a collegial body. In turn, its Chairman is the sole body. At the same time, both the board and its chairman are accountable to the General Meeting, as well as to the Board of Directors of the corporation. Their task is to ensure the implementation of decisions adopted by higher company management structures.
The Gazprom Management Committee and its chairman are elected as part of the activities of the Board of Directors. The duration of their powers is 5 years. The competence of the Management Board includes, in particular:
- development of a budget for the year;
- development of investment programs, plans for the corporation;
- preparation of reports;
- organization of gas supply management;
- ensuring the functioning of the Russian gas supply system.
Departments
The organizational structure of Gazprom is also represented by various departments. They may be responsible for:
- ensuring technological processes;
- accounting;
- implementation of foreign economic programs;
- conducting internal control, as well as audit;
- investments and implementation of construction projects;
- maintaining a marketing policy;
- organization of fuel processing;
- fuel production;
- information policy;
- interaction with the regions of Russia;
- organization of transportation, storage, use of fuel;
- management of various property, affairs, personnel, projects;
- implementation of corporate relations;
- strategic development;
- economic expertise;
- issues of pricing, economics, finance;
- organization of production management ;
- legal issues.
Gazprom Revision Commission
There is another important structure that is part of the Gazprom management structure. It is about the Audit Commission. She reports to the General Assembly, is an elected body. The work of the Audit Commission of the company is also regulated by a separate Regulation.
In addition, the relevant structure of Gazprom is guided in its activities by the laws of the Russian Federation, the Charter of the company, as well as decisions of the General Meeting. The main tasks that this structure solves:
- control over the formation of reports and other information reflecting the indicators of the economic development of the company, as well as characterizing its property status;
- control over the compliance of accounting methods used in the corporation with the provisions of Russian legislation;
- ensuring timely reporting by the corporation to interested organizations;
- preparation of proposals aimed at increasing the efficiency of managing the assets of the corporation, as well as the implementation of other areas of financial and economic activity of companies;
- preparation of proposals to reduce economic risks, optimization of internal control mechanisms in the corporation.
This is one of the largest companies in the world, and its management is organized in this way. Gazprom in its structure as a whole is organized like other corporations of the corresponding scale. But given the importance of those tasks that the company solves in the course of its activities, the organization of business management in this case requires the use of the most effective approaches in management.
De jure, the head of Gazprom - the chairman of the board of directors of the company, as well as his subordinates solve difficult tasks to bring the corporate governance system in line with this criterion.
Company branches
In the course of building the Gazprom management model, its branches were transformed into independent legal entities. They began to function as regional corporations in the gas sector. Each branch of Gazprom, therefore, is de jure independent of the main company, although it certainly develops in the context of the strategic priorities that are developed by the head office of the corporation.
Management Migration to the Northern Capital
The management of the largest Russian gas corporation is characterized by a very remarkable trend - the steady migration of Gazprom’s internal corporate structures to the Northern capital. We already know that the city where the Gazprom headquarters is located is Moscow. But now St. Petersburg has every chance of becoming a key city in terms of brand presence at various levels of legal relations in Russia. With what it can be connected? What attracts such a corporation as Gazprom, St. Petersburg?
First of all, of course, it is worth noting that the Northern capital of Russia is a beautiful city in itself, and this fact alone can become a factor in the desire of the country's leading managers to work there. According to experts, the largest Russian gas corporation now occupies about 20% of St. Petersburg’s offices in the luxury segment.
By 2018, the company’s headquarters will be located in the Northern capital. It is assumed that the new main office of Gazprom will be located in the Lakhta Center building, which is currently being built in the Primorsky district of St. Petersburg. The building will be represented by a skyscraper, as well as an office complex. The total area of the structure will be about 400 thousand square meters. meters.
What address will the Gazprom headquarters be located in the Northern capital? The address of the Lakhta Center is Lakhtinsky Prospekt, 2, bldg. 3. Construction of the facility began in 2013. It is estimated that the skyscraper of the center will be the highest among the buildings of Russia and Europe. In particular, it will be 88 above the Federation Tower, which is located in the Moscow-City office complex.
Office Address
Actually, where is Gazprom headquarters now located? Address of the current main office of the corporation: Moscow, ul. Nametkina, 16. The building is thus located in the South-West of the Russian capital. It is possible that after Gazprom moves (St. Petersburg and Lakhta Center are still waiting for this), the competent structures involved in the management of the company will continue to work in the building of the current headquarters of the corporation .
Gazprom subsidiaries and departments operate in St. Petersburg.