Chernomyrdin to Head Gas Monopoly

Former Prime Minister Viktor S. Chernomyrdin was elected Wednesday to chair the Gazprom natural gas monopoly, Russia’s largest company.

While the post is largely ceremonial--requiring little involvement in the company’s day-to-day operations--its occupant can wield great political influence.

Gazprom is a cash cow for the government, accounting for about a fifth of all tax revenues, and the company could be a major source of campaign funding in parliamentary elections in December and presidential elections next June.

Chernomyrdin, a former chief executive of Gazprom and most recently Russia’s mediator in the Kosovo crisis, was elected chairman by the company board at its annual meeting.

Russian media speculated that the election of Chernomyrdin, a seasoned player in Kremlin intrigues and an ally of President Boris N. Yeltsin, indicated the Kremlin’s desire to tighten control over the gas giant in the run-up to the elections.

It was the second time in five days that a Yeltsin supporter was installed on the board of a major Russian company. On Friday, presidential Chief of Staff Alexander Voloshin was elected chairman of the board at another giant, Russian electricity monopoly Unified Energy Systems.

The government owns a 38% controlling interest in Gazprom, whose exports alone totaled $10.4 billion last year.

Chernomyrdin, 61, was Gazprom’s CEO before he became the prime minister in December 1992--a job he held until Yeltsin abruptly fired him in March 1998.

Chernomyrdin dropped from the public eye until April, when Yeltsin tapped him to be his envoy for Kosovo after the North Atlantic Treaty Organization launched airstrikes against Yugoslavia in March. Chernomyrdin played a key role in negotiating a peace deal that led to the deployment of international peacekeepers in the Yugoslav province.

Chernomyrdin also leads the Our Home Is Russia group, which has the second-largest faction in the lower house of parliament.