1. Viktor Shishov Participation of the state in corporate governance (on the example of Gazprom Group)

2. Agenda State as a shareholder State-owned companies in Russia Participation of the state in corporate governance Advantages and disadvantages of state-owned companies Example of Gazprom – Description of the company – Corporate governance – State in Gazprom Problems

3. State as a stakeholder Motives and interests differ from interests of private investors influence the legal status of joint stock companies predetermine the presence of special regulating norms that are applied for certain business activities.

4. Three main areas State can participate in the management of the company. possess, use and dispose its shares control over the use of the property of the company.

5. State-owned companies  are enterprises where the state has a control through full, majority or significant minority ownership.  Direct and indirect ownership at any level of government = at least 10%

6. Joint stock companies Unitary enterprises State corporations State-owned companies in Russia Gazprom, Sberbank, Russian Railways Post of Russia, Rosspirtprom Rosatom, Rosnanotekh, Rostekhnologii

7. Positive aspectsNegative aspects State-owned companies have a lower risk of bankruptcy than other enterprises State objective and commercial goals may contradict each other It is easier to repay the debtsIncentives to improve the economic performance are limited Demand and consumption of this kind of products and services is high The questions connected with a property reduces control Companies operate mostly in key industries Board of directors acts as "connecting link" High level of social responsibilityThe rapid growth and expansion of activities are related to risk

8. o The largest extractor of natural gas, one of the largest companies in the world and the largest joint- stock company in Russia. o Total number of the shareholders is over 500,000. o The state owns a 50.002 per cent controlling stake

9. http:// eng.gazpromquestions.ru /?id=10 OAO Gazprom share capital structure

10. http://www.gazprom.com/about/management/corporate-governance/ The internal control system of corporate governance

11. Gazprom’s corporate governance Outsider model of the Corporate Governance State as a consequence of the authoritarian system, centralization and conservatism State is the largest external shareholder (over 50%) Vertical integrated corporate governance structure

12. Corporate governance problems in GAZPROM Appointment and work of state representatives Transparency issues Questions connected with a property Board of directors Financial statement the existence of two legal entity forms within the same company

13. Thank you for your time