The Political Economy of Oil in Post-Soviet Kazakhstan, Volume 1

This dissertation analyzes the process of restructuring Kazakhstan's oil sector through comparison with the Russian petroleum industry. In Russia, several private, vertically integrated oil companies (VICs) were formed on the basis of existing oil-producing units and soon emerged as essential players in the Russian oil sector. By contrast, Kazakhstan's marginalized status within the Soviet system of oil production resulted in the absence of organizationally strong sectoral interests capable of claiming control over the industry after the independence. Privatization of Kazakhstan's oil enterprises, conducted by the government in spite of the resistance from local oil managers, transferred controlling stakes to foreign investors and further weakened domestic oil interests. Unencumbered state autonomy allowed the increasingly authoritarian Kazakhstani government to adopt relatively modern and investor-friendly petroleum legislation by decree. In Russia, the government's efforts to reform oil-related legislation were blocked by the leftist-dominated Duma, the democratically elected lower chamber of the Russian parliament.