Russian oil privatization proved an unprecedented clearance sale

05/27/2002
Soon after the breakup of the Soviet Union, numerous operating units of the former Soviet oil-related ministries were contentiously divided into regional and technological groups subject to immediate corporatization and subsequent privatization.Starting from late 1992, 300 formally independent but fully state-controlled "production associations" (amalgamations), enterprises, and research centers dealing with oil exploration, production, refining, and product distribution in Russia have gradually developed into a dozen vertically integrated and partly privatized oil companies, led by the "eldest" Russian majors-OAO Lukoil, OAO Yukos, and Surgutneftegaz (SNG).Originally established as wholl...
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