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Russia and Vietnam will keep their cooperation alive with the help of Gazprom. Russian President Vladimir Putin (second left) and Vietnamese President Nguyen Minh Triet (right) are seen in the photo.
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Nov. 21, 2006
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Russian Monopolists Enter Vietnamese Market
Russia’s President Vladimir Putin met Vietnamese leader Nguyen Minh Triet in Hanoi on Monday to sign an agreement which will help Russia’s oil major Zarubezhneft and gas monopolist Gazprom enter the Vietnamese market. Kommersant special correspondent Andrey Kolesnikov brings this report from Hanoi.
Vladimir Putin’s official visit in Vietnam started and finished on Monday in scorching heat with lots of banners, medals and speeches.

The Russian and Vietnamese presidents went to the Vietsovpetro oil producing plant – which has lately turned 25 – to give out decorations to the workers.

I met two Russians who receive their decorations on that day. Both of them have spent over 11 years in Vietnam and grown to love this country.

Alexander Lykov, who received the Order of Friendship, said that life in Vietnam is not always easy but still amazing. It is a shame that his life in Vietnam is coming to a head.

“Why so?” I asked. “I thought the presidents were going to sign an agreement to reregister Vietsovpetro in 2010, weren’t they?”

“Have no idea what they’re going to sign but we are already handing top managing posts to the Vietnamese,” Alexander said gloomily.

“Russia shouldn’t leave Vietnam,” Evgeny Dyukov who was decorated with the Order of Merit for the Fatherland of the 2nd degree said. “We have 700 people working here, and – everyone knows it – the net profit from every Russian at Vietsovpetro is one million dollars!”

The other Russian looked genuinely amazed after learning his real value, but said:

“No regrets from me. Production is in decline here,” Alexander said.

“Is it true that the Vietnamese don’t like it that Zarubezhneft takes half of the profits of the joint venture and that’s why they want to shut it down to register it again, but on other terms?” I asked the workers.

“I don’t know, really…” Alexander replied. “To tell the truth, we built everything for them: oil platforms, everything else, and we brought equipment with us too…But we must hand it to them – they have paid all their debts back. Now they are working more with Singapore and Japan – I don’t know why. But they still sign contracts on components with us – these are our components after all!”

“Do you like it here?” I asked.

“Absolutely,” Evgeny answered. “Everyone feels good here as soon as they are here. Some people say that Americans are still looking for their prisoners all around Vietnam. But these prisoners are hiding. A neighbor of mine, an old man has just died – he was a real American, spent time after the war here and decided to stay. He had a small shop and a Vietnamese wife. A friend of ours, a Russian, also got married. His contract ended but he stayed.”

However, Alexander and Evgeny do not need to worry about it. Vietsovpetro will be reregistered under Vietnamese and Russian legal systems. So the Russians may have been too hasty, handing their posts to the Vietnamese.

What is more, Gazprom is joining Zarubezhneft in Vietnam. The Russian and Vietnamese presidents have signed a declaration on cooperation in oil and gas exploration and extraction. Under the agreement, Russia and Vietnam will keep on running two oil and gas deposits in Vietnam (White Tiger and Dragon) after the agreement expires in 2010. They will also be cooperating in works at other sites in Vietnam, Russia and elsewhere.

I saw Gazprom’s head Alexey Miller among other high-placed guests after the ceremony.

“Have the Vietnamese really traded Vietsovpetro with its enormous profits for your entry into the project?” I asked Miller.

“How come? Why so?” Miller did not really get my question at first.

“The Vietnamese are hoping to rush into other countries with their exploration and production technologies – but on your shoulders.”

I thought that Alexey Miller even looked around to make sure there was no one who could hop onto his shoulders:

“In fact, we want to enter neighboring countries they work with on their shoulders,” he admitted. “You know… China is just a stone’s throw from here. That’s the point. This is something to think about.”

Andrey Kolesnikov

All the Article in Russian as of Nov. 21, 2006

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