Gazprom management under pressure

Who will rule Gazprom from the company's headquarters in Moscow?

By Caroline Wyatt in Moscow

The Kremlin is discussing whether to replace the head of Russia's most important company, Gazprom, ahead of a crucial board meeting next week.

Gazprom is Russia's biggest company, accounting for 8% of gross domestic product.

It accounts for a fifth of Russia's export revenues and taxes, and controls a quarter of the world's known gas reserves.

But Gazprom has been plagued by scandal, including allegations of mismanagement, corruption and nepotism.

Pressure for change

The Russian government is under pressure to control the company's management more tightly following a string of scandals.

The Russian state still owns 38% of the company, but there is a perception, even within the Kremlin, that Gazprom has become a state within a state - operating independently and sometimes even in opposition to the government, despite its recent help in taking over the independent Russian TV station, NTV.

Gazprom's minority shareholders are also becoming more vocal in their complaints, especially about the company's leadership.

Leadership concerns

Rem Vyakhirev has been chief executive of Gazprom since 1992. During that time, critics say, between $1bn-$2bn have gone missing from Gazprom every year.

A recent investigation by German and Russian newspapers alleged that bosses at Gazprom used a web of shadow companies to syphon off Gazprom's money and assets to a network of family and friends - including the sons and daughters of some of Gazprom's current management.

Many of the company's small shareholders, represented by the former Russian finance minister, Boris Fyodorov, want Mr Vyakhirev replaced, saying it would send a signal that Russian business is determined to clean up its act.