Gazprom: GasPutin for Investors

Vladimir Putin announced his support for Dmitry Medvedev, the present chairman of buy-recommended Gazprom (OGZPY.PK), to be elected next President of Russia in March 2008. Signaling a choice expected to be investor friendly, stock prices for Gazprom and buy-recommended Lukoil (LUKOY.PK) advanced 3% in a positive Russian stock market after the announcement on Russian television on December 10.

At age 42, Mr. Medvedev is a new generation Russian having earned his doctorate in law after the country abandoned central planning of its economy. Coincidentally, he would be the youngest leader of Russia since Tsar Nicholas II, who took counsel from Grigori Rasputin about a century ago. Though the last czar and the “Mad Monk” met tragic ends, we are optimistic that Mr. Medvedev and Mr. Putin can help the world’s greatest natural gas company realize its economic potential to the benefit of the Russian people, its customers and its investors.

Providing another hint of hope for investors, Deputy Chief Executive Officer Alexander Medvedev, no relation, told Bloomberg on November 30 that it is more than 50% likely that Gazprom shares will trade on the New York Stock Exchange.

Originally published on December 11, 2007.