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Friday, 12 October, 2001, 12:28 GMT 13:28 UK
Gazprom to shed media interests
An anti-Gazprom demonstration
Gazprom's NTV takeover was bitterly opposed
Russia's Gazprom has announced the sale of all its media assets, marking a strategic about-face at the world's biggest gas company.

Gazprom, which is minority state-owned and close to the Russian government, has built up stakes in newspapers, magazine and broadcast media over the past few years.

Its most controversial acquisition was the takeover in April of NTV, Russia's only privately-owned nationwide broadcaster.

But Alexei Miller, Gazprom's new chief executive, said all the stakes would be sold, and announced the resignation of Alfred Kokh, the Gazprom executive who headed the firm's media subsidiary.

Political problems

Analysts have been quick to put a political interpretation on events.

Gazprom's initial accumulation of media interests was widely seen as an attempt by the state to quash opposition voices in the press.

The Gazprom HQ in Moscow
Gazprom is seen as dangerously close to the Russian state

Most of Gazprom's media holdings - including NTV, news magazine Itogi and now-defunct newspaper Segodnya - were noted for their criticism of the government before acquisition by the gas firm.

Now, some say that the planned disposal is an indication that the government of President Vladimir Putin is either more comfortable with criticism, or more convinced that it will not emerge.

Others, however, notably prominent opposition politician Boris Nemtsov, argue that Mr Kokh's resignation was prompted by the government's attempts to increase its control over non-state media.

Commercial interests

Whatever the political issues involved, Gazprom maintains that the motivation behind its media acquisitions, and plans to sell, have never been anything but commercial.

Itogi cover
News magazine Itogi is one of Gazprom's main media brands

Gazprom's takeover of NTV, which was fiercely opposed by liberals and the broadcaster's staff, was justified by the fact that Gazprom was NTV's main creditor.

And Gazprom has certainly changed course sharply since Mr Miller was installed in June.

After many years under the control of Rem Vyakhirev, a tycoon with close links to the Yeltsin administration, Mr Miller was brought in with a brief to shake the firm up.

In the past few months, Gazprom has pushed through a number of reforms that may help make the firm more attractive to investors.

Gazprom's shares, which are still not completely freely traded among foreign investors, have performed poorly in recent years, thanks to investor concerns over its lack of transparency.

See also:

29 Jun 01 | Business
Kremlin grabs control at Gazprom
30 May 01 | Business
Europe's need for Gazprom's gas
30 May 01 | Business
Gazprom boss fired
25 May 01 | Business
Gazprom management under pressure
14 Apr 01 | Europe
Analysis: The battle for NTV
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