Inside Gazprom, the state within a state: The Russian energy giant that extends Putin’s power

The war in Ukraine has put the spotlight on the gas goliath that plays an outsized role in European affairs, reports Borzou Daragahi

There is perhaps no better example in history of an energy company seeking to influence political power than Gazprom (AFP/Getty)

He knew that Russia was pushing hard to promote the gas pipeline network it sought to build across Europe. But the American diplomat learnt the extent of Moscow’s willingness to bully other countries when he met with an eastern European leader after lunch during a visit some years ago.

He was attempting to convince the leader back in 2007 to forgo gas from Russia’s Gazprom in favour of an American-backed option. The European leader replied warily that he could not afford to upset Moscow and its giant state-owned energy provider, Gazprom.

“He said that he wanted me to understand that he felt threatened for his own political survival and his own citizens’ wellbeing, because they have to renegotiate their gas pipeline,” recalls Matthew Bryza, who served as the US Department of State’s deputy assistant secretary for European and Eurasian affairs in the late 2000s.