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. Last Updated: 07/27/2016

Gazprom, State Sign Trust Agreement




Russia's natural gas giant Gazprom has signed a long-delayed trust agreement with the government that tightens government control over the company, a news service reported Monday.


Signing of the agreement has been postponed repeatedly by the company's management, which was unhappy with some of the agreement's provisions.


Itar-Tass said Gazprom chief Rem Vyakhirev and fuel and energy minister, Sergei Kirienko, finally signed the agreement Saturday.


The new deal replaces one signed in early 1994 that had given Vyakhirev sweeping control over the government's 35 percent stake in the company.


Unlike the previous agreement, Gazprom management no longer has the right to buy the government stake at par value. It also has to consult with the board of government representatives on key issues, such as changes to the charter, appointments of the board of directors, and dividend payments. The new draft expires March 1, 1999.