Gazprom (C): The Ukrainian Crisis and Its Aftermath

Rawi E. Abdelal; Sogomon  Tarontsi; Alexander  Jorov

Supplement | HBS Case Collection | August 2008 (Revised July 2009)

Gazprom (C): The Ukrainian Crisis and Its Aftermath

by Rawi E. Abdelal, Sogomon Tarontsi and Alexander Jorov

Abstract

The case describes the resolution to the January 2006 gas crisis, precipitated by the decision of Gazprom, the largest natural gas producer in the world, to cut off gas supply to Ukraine because of disagreement on the terms of future trade. The case also narrates the events that have followed: the adoption by Gazprom of a comprehensive policy to renegotiate prices with the rest of the former Soviet states; the erratic relationship with Ukraine, dependent on the internal political configuration in the latter at any given time; and a persistence of Gazprom's negative image in the world.

Keywords: Trade; Non-Renewable Energy; Cross-Cultural and Cross-Border Issues; Governing Rules, Regulations, and Reforms; Conflict Management; Reputation; Energy Industry; Russia; Ukraine;

Format: Print

12 pages

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Citation:

Abdelal, Rawi E., Sogomon Tarontsi, and Alexander Jorov. "Gazprom (C): The Ukrainian Crisis and Its Aftermath." Harvard Business School Supplement 709-010, August 2008. (Revised July 2009.)

Case | HBS Case Collection | November 2019 (Revised June 2020)

Russia: A Drama In Three Acts

Rawi Abdelal, Rafael Di Tella, Galit Goldstein and Sogomon Tarontsi

The collapse of central authority in the Soviet Union in 1991 ushered in a period of revolutionary transformations for the states that emerged in its wake. The leaders of Russia, the USSR's successor, struggled to reestablish central authority while also seeking to avoid further disintegration, establish a democratic polity, and institute a market economy across the next several years. Russia would navigate further economic crisis and a swiftly evolving geopolitical order as it returned to the world stage. The case examines the different governance approaches adopted by Presidents Boris Yeltsin, Dmitry Medvedev and Vladimir Putin, and concludes with a discussion of Russia’s strategic challenges and opportunities in 2020. The case focuses on problems of state authority; fiscal capacity; institutionalization of political parties; relations between the federal center and provincial governments; relations between the state and big business; economic policy; international relations; and models of economic development.

Keywords: Business ＆ government relations; developing countries; government policy; policy change; Policy Making; Economic Systems; Economics; Globalization; Emerging Markets; Privatization; Non-Renewable Energy; Governance; Global Strategy; Corporate Governance; Policy; Business History; Lawfulness; Problems and Challenges; Business and Government Relations; Risk and Uncertainty; Strategy; Change Management; Russia; Moscow;

Citation:

Abdelal, Rawi, Rafael Di Tella, Galit Goldstein, and Sogomon Tarontsi. "Russia: A Drama In Three Acts." Harvard Business School Case 720-020, November 2019. (Revised June 2020.) View Details

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The greatest challenge to the sustainability of our current era of globalization comes from within the United States. Most Americans have come to reject globalization. We must discern the lessons from the parts of the developed world where the backlash is also profound—France, for example—and where it has been more muted—such as Germany. In both the United States and France, gross Gini coefficients have increased sharply during the past thirty or so years. The French state has, however, delivered a net, after-tax, after-transfer distribution of income that is more equal than it was thirty years ago. And yet: France is still in the midst of an anti-systemic populist revolt. There is only one inescapable conclusion: It is not just about the money. Those who feel left behind in both countries feel that they have lost respect and dignity. We cannot redistribute our way out of the crisis of global capitalism. The German experience holds lessons. We must value and valorize the many ways in which people contribute. We must also pursue policies that create patterns of employment that confer dignity, meaning, and purpose. I argue for dignity as a tool of policy, beyond its normative desirability as a goal.

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Gazprom (C): The Ukrainian Crisis and Its Aftermath

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