Certainly the notion of the Russian Gazprom seeking to gain a stake in Kyrgyzgaz is likely to be seen as a further sign of Russia’s supposedly agressive energy politics, as suggested by the title of Eurasianet’s article - “Russia Striking Back in Engergy Game, Makes Play for Kyrgyz National Gas Company” - on the subject.

Yet, inevitably, a look beyond the stereotypes and headlines indicates that it is premature to draw any conclusions, either about Russia’s intentions or Gazprom’s involvement. Indeed, ITAR-TASS reports that Kyrgyz officials have not even approved plans to privatise Kyrgyzgaz:

Kyrgyz Industry Minister Saparbek Balkibekov told journalists on Monday that the plan of Kyrgyzgaz privatisation has not been approved by the republic’s government yet, therefore “it will be possible to hold substantive talks with Gazprom only after all the Kyrgyz side has completed all the necessary procedures.” At the same time Balkibekov noted that Gazprom does not hide its interest in buying assets of Kyrgyzgaz and in this connection has requested to timely inform the Russian side of the privatisation timeline.

Assuming this is the case, Eurasianet’s assertion that “Gazprom in recent weeks has gone on an acquisition and joint-venture binge in its effort to secure Russia’s dominating position as the controller of Central Asian energy exports and of European Union supplies” looks a little sensationalist to say the least.

It may also be worth considering if Kyrgyzgaz is an attractive acquisition for Gazprom: 24.kg reported on January 30 that the company’s management has been accused of incompetence by the Association of Petroleum Traders of Kyrgyzstan (RUS). Kyrgyzgaz has rejected the claims, which are based on the company’s failure to resolve questions linked to the presence of an Uztransgaz storage facility in Kyrgyzstan and the fact that Baktenneftegaz is the company that actually deals with extracting gas, rather than Kyrgyzgaz itself. Eurasianet voices a similar caution for potential investors:

According to an anonymous source in Kyrgyzgaz, Gazprom, if it acquires the Kyrgyz company, would be ignoring the type of risk that normally deters a typical investor. “Due to serious economic difficulties, local industrial and individual natural gas consumers have huge, multi-million debts and are not going to, or are able to, pay them,” the source said. “It’s been a chronic problem. [Prime minister] Chudinov used to be Kyrgyzgaz’s general director; he knows. I can’t see how the new owner is going to solve this problem.”

Gazprom may, therefore, be better just sticking to its most recent $300 million commitment in Kyrgyzstan, which involves the exploration and development of the Kugart and Mailusuu 4 fields.