Evans to Rosneft?
I'm absolutely fascinated by reports that Midlander and former Commerce Secretary Don Evans has been asked by Russian president Putin to become Chairman of the Board of Russia's largest oil company. If true, and if it comes to pass, we may someday look back on this event as a watershed in the legitimization of the Russian oil and gas industry, which up to this point has been at best a doddering behemoth and at worst a disaster of the first stripe.
The implied message of the outreach is arguably much more important than the actual event. Putin seems to be admitting that his country's most valuable industry is basically out of control, and there's no one inside Russia who can master it. He's also taking proactive steps to give some assurance that when Rosneft becomes partially privatized next year via an IPO, it will have the kind of leadership necessary to ensure that investors feel comfortable in buying its stock.
It also is a vivid reminder of how different the Russian style of government and business is from what we're accustomed to. Of course, Rosneft is a state-owned company and thus you'd expect that the political leader would have a certain amount of control over or input to the selection of the business leader. But can you imagine Dubya inviting, say, Tony Blair to become head of ExxonMobil? OK, bad example. But, you know what I mean.
I doubt that anyone's naive enough to think that Evans will singlehandedly turn around an entire national industry. But if a west Texas oilman can't do it, nobody can. At the very least, it's a good start.
Technorati tags: Donald Evans | Rosneft
Ah, but the big difference in this case is that Evans is actually - gasp! - qualified for the job.
To be sure, you're exactly right...nothing Putin does lacks a political angle, and I'm sure Evans is warily circling the proposal like a roadrunner around a rattler. But this smacks of hat-in-hand desperation, the likes of which I can't recall. Keep in mind that we're talking about what is arguably the single most important corporate position in the nation.
Posted by: Eric at December 14, 2005 10:03 PMI sat in the same pew with Don at a funeral about a month ago....... I thought I heard him whispering in Russkie.
Posted by: Wallace-Midland, Texas at December 14, 2005 10:11 PMWas he wearing a beaver hat? (Don't answer that; it's purely rhetorical.)
Posted by: Eric at December 14, 2005 10:13 PMInherently, cops and soldiers must...but, generally, don't ever take a job where you might actually get shot at.
Posted by: Natalie at December 16, 2005 10:40 AMTrue, but the reality is that you can be board chairman without ever actually showing up in the same country as where the company is located. I'm sure that the rest of Rosneft's board would jump at the chance to come to New York or LA for their meetings.
Posted by: Eric at December 16, 2005 10:47 AMAbout the publisher
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Eric, another way of looking at it (hey, it's part of my job, right?) is that Mr. Putin has enough Western savvy to be waiting outside that often-documented revolving door, through which pass public servants entering or re-entering the private sector ... along with all the ties, connections, clout they still have in our government.
Russia would not be the first foreign goverment or business to employ such people ... not by a long shot.
I'll strap on my helmet, now. :-)
Posted by: Jeff at December 14, 2005 09:58 PM