On NOVATEK's Board of Directors
Gennady Timchenko, co-owner of the Swiss Gunvor, may become a member of the board of directors of Russia's biggest independent gas producer, NOVATEK, Kommersant has learnt. He will replace the former Anti-Monopoly Policy Minister Ilya Yuzhanov.
Such a "castling move", experts believe, may help the company to raise money and increase revenues due to the growth of gas condensate export during the crisis.
Mr Timchenko, a co-owner of the Rossiya Bank, worked together with Prime Minister Vladimir Putin in St Petersburg Administration in the early 1990s. He is one of the founders of the Yavara-Neva Judo Club, of which Mr Putin is an honorary President.
The NOVATEK Board of Directors will today discuss the agenda of the annual meeting of shareholders due to be held before the end of May. Two sources close to the company say that one of the candidates on the list will be co-owner of the Swiss oil trader Gunvor Gennady Timchenko. "He will be nominated by an offshore company Cliveden which holds a 7.1% stake in NOVATEK," Kommersant's source said. Another source added that Mr Timchenko had been considered for board membership since last autumn. Gunvor representatives were not available by phone yesterday.
At present NOVATEK's board of directors includes Chairman of the Board Leonid Mikhelson, Finance and Strategy Director Mark Jetway, Chairman of Gazprombank Andrei Akimov and Chairman of Troika Dialog Ruben Vardanyan, the head of VEB Vladimir Dmitriyev, member of Gazprom management Kirill Seleznyov, as well as Ilya Yuzhanov and Burghard Bergman. The board is headed by Alexander Natalenko, a foremost Russian geologist. Seven of the nine members are independent directors.
In October 2008, NOVATEK was notified by Volga Resources SICAV SIF S.A. to the effect that its 100% owned subsidiary White Seal Holdings Limited (Cyprus) had increased its stake to 5.07% of the authorised capital (of which 3.8% in ordinary shares, and 1.2% in global depositary receipts). At the time Volga Resources confirmed that the company was affiliated with Gunvor shareholders, including Mr Timchenko. Mr Timchenko is to replace Ilya Yuzhanov, former Minister for Anti-Monopoly Policy and Support of Entrepreneurship.
"Gennady Timchenko is close to Prime Minister Vladimir Putin, he is a prominent figure and an influential oil industry businessman. His experience will come in useful to the company, which plans to export liquefied gas, says analyst Valery Nesterov of Troika Dialog.
Replacing a bureaucrat with an influential businessman will be good for the company. Maxim Shein of Brokerkreditservis adds that Mr Timchenko's lobbying potential may be helpful to NOVATEK amid the global financial crisis in securing government support.
Natalya Kiselyova