Gazprom after Medvedev

Gazprom holds its annual general shareholders' meeting this week, its first since former Chairman Dmitry Medvedev was elevated to the Russian presidency.  The unremarkable Viktor Zubkov -- an ex-tax inspector and former prime minister -- has succeeded Medvedev at the helm of Gazprom and can be expected to emphasise continuity over change for the energy conglomerate.

Shareholders should be pleased with the distribution of dividends following Friday's meeting, as it has been a banner year for Gazprom:

• It has agreed to develop the Shtokman field, extending Russia's presence into the potentially lucrative Arctic region;
• Improved its long-term prospects by starting to develop the second phase of the Sakhalin project; and
• Moved ahead with South Stream, a strategically important pipeline that would transport Russian gas to Europe.

Yet Gazprom must also contend with how it will continue expanding operations, especially towards a wary West.  Last week, Chief Executive Aleksei Miller predicted a catastrophic 'deindustrialisation' of Europe should the EU disallow the Russian energy behemoth from entering the European market on favourable terms. 

Such threats are unlikely to endear Gazprom to European decision-makers, and suggest that the firm's strategy would benefit from further refinement. However, this week's meeting may not aim to resolve these critical issues.  Gazprom has gone to great lengths to make its shareholders' meeting publicly accessible, even providing streaming video of the event via its website.  The meeting will therefore be a show of strength and solidarity -- signifying little, but providing Moscow with a means of trumpeting the success of Russia's flagship state organisation.