Vahid Alakbarov, the 13th richest Russian, president and co-owner of the oil company Lukoil, wants Czechs to know about him.
He is sponsoring the Russian translation of President Václav Klaus’ book and is bringing a large symphonic orchestra to Prague. And he is willing to do an interview with a Czech newspaper: “We are interested in the Czech Republic”.
The interview took place last week at the Lukoil palace in the centre of Moscow. Alakbarov is not a tall man, he speaks quietly, he often smiles and has a modest and relaxed air. But throughout the interview, it was quite obvious that he will not say a word more than he has to. He asks for “Different questions!” when he does not want to answer. Thirty-five minutes later, obviously content with saying all he wanted the Czechs to hear, he stands up, says thanks and leaves without any warning.
Lukoil sponsored the Russian translation of Václav Klaus’ book Blue Planet in Green Shackles. Why did you do it?
Our nations used to have a very strong relationship. In the time of Czechoslovakia, there used to be a rich cultural and touristic exchange. We had a lot in common. The connection was then broken, and the gap needs to be filled.
Our company participates in social life everywhere it goes. And it could serve as a bridge, connecting the interests of the two nations through projects such as the translation of Václav Klaus’ book or the introduction of Pyotr Ilyich Tchaikovsky’s symphonic orchestra, one of the best orchestras in Russia.
Do you share President Klaus’ opinions on global warming?
Each person has his own point of view on these matters. Books on similar topics are valuable for our university, to which we donated a number of copies. And then there is the author’s personality: He is the leader of a state, and that is also important. Different questions!
We are sorry, but our readers are interested in this. Whose initiative was it?
The idea for the translation came from our Prague representatives. But if our Prague office suggested the Czech translation of a book by our president, it might prove more difficult…
They don’t like to see us at first. But then the fear quickly subsides
You are obviously interested in the Czech market. What significance does it have for you? It is rather small for a company of your size.
In reality, we have only returned to the Czech market. We used to be there before but then we unfortunately left because there was nothing to work with here back then. But now, our Texas shareholder ConocoPhillips decided to leave eastern Europe and we bought their assets. We are also interested in buying shares in one of your big refineries.
So your return to the Czech Republic was a coincidence? Those 44 ConocoPhillips petrol stations must be an insignificant number for you.
We are definitely not in ČR by coincidence. We analyse each project separately. The ConocoPhillips network included Sweden and Denmark, for example, which we did not buy. We only took over those assets we considered interesting for strategic expansion. We bought Belgium and Luxembourg because we hope that we will manage to get a refinery somewhere in the vicinity of Rotterdam port. We took the Czech Republic, Poland and Hungary because these countries lie on communication lines that are part of our technological network.
Czech government representatives, however, continuously show that they consider Russian investment in strategic fields risky.
This is not obvious only on the Czech market but also in other European countries. There is a negative attitude toward Russian investments. Despite all that, we are currently operating in 14 European countries.
I would say that the worries always emerge before we enter the market, but the moment we are there, the fear disappears. We are very active in Poland, and Polish motorists show us due respect. It is the same in the Czech Republic.
But the reaction to your contract for supplying Prague Airport airplanes was rather negative.
We supply airplanes in a number of countries. In Bulgaria, a NATO military base is supplied from a Lukoil terminal. What fear can there be when even NATO uses us to fulfill its missions?
The fear stems from the fact that the Russian government sometimes pushes its political interest through state energy companies.
This can, of course, happen when it comes to state companies. The state will certainly determine the politics of the companies in which it is the main shareholder. That is its right. But Lukoil is a 100% private company now.
But, even as a private oil company, can you act completely independently of Kremlin and of Russian politics?
There is no dependence on politics. Our main shareholder, ConocoPhillips, is the third biggest oil company in the US, after all.
The biggest European and US markets trade in our shares. Analysts examine our finances. We are transparent. And ConocoPhillip is a shareholder that wants to create profit and develop its business. That is also our main aim.
We are a company that has more than 20 billion barrels of oil at its disposal. Apart from diesel, we are also big producers of natural gas. The volume of our reserves continues to grow and we still want to enter new markets. And we do not want to only trade in crude oil. We also want to expand into oil refining. And we want to eliminate the mediators who are currently operating between us and you on the way from extraction to petrol stations.
When Czechs go to Russia, they unfortunately end up in Moscow
Are there any projects you find worth considering in the Czech Republic?
Plans are one thing and possibilities another. We definitely want to operate in eastern Europe. I think we are a comfortable partner for the Czech government and Česká rafinérská shareholders. We are able to guarantee stable oil supplies. And we can also become a bridge to the big Russian market.
What exactly do you mean by that?
We can help by our contacts, for example. It would be good to take Bulgarian or Czech businessmen on a plane and bring them to western Siberia, so that they can make contacts and meet new business partners.
When Czechs travel to Russia they usually only go to Moscow, and so they do not know those regions where the consumers still remember Czech products from earlier years. That is a pity. And I think that is another opportunity, where our company can step in.
Translated with permission by the Prague Daily Monitor
