Why you may wish to avoid Gazprom, or not

15 November 2010

3 minute read

Why you may wish to avoid Gazprom, or not

Gazprom is hiring a lot of people. According to the Financial Times, it wants to recruit, 'up to 600 staff in London' for its Gazprom Marketing and Trading business.

The hires are to happen over an unspecified time period in the future. They will be accompanied by a move out of Gazprom's current offices in Hampton Wick and into new offices near Regent's Park. In the UK, Gazprom also employs 100 people in Manchester.

However, while Gazprom Marketing and Trading is expanding, its appeal is slightly equivocal. Here's why you may, or maybe won't, wish to work there.

Positives

1) Growth story

This is not the first time Gazprom Marketing and Trading has expanded. Its most recent accounts, filed in late 2009 show that it went from employing 148 people in 2008 to 258 people in 2009. The FT's account suggests it now employs 400 people in the UK and that it wants to employ 1,000.

2) Enormity

Gazprom owns the world's largest natural gas reserves and is responsible for 17% of global gas production. It owns the world's largest gas transmission system and is trying to diversify into oil and energy production. Earlier this year, Fortune Magazine declared Gazprom the most profitable company in the world.

3) Pay

By most people's standards, Gazprom Marketing and Trading pays fairly well. In 2009, its average compensation per head (wages and salaries alone) was 151k and the best paid director earned 2.2m.

4) Nice video

Gazprom has a nice video to attract graduate recruits. It appears to have been made by a fan of Bod.

Negatives

1) The Russian government

The Russian government owns a 50.002% controlling stake in parent company, Gazprom. Dmitry Medvedev was formerly chairman of Gazprom's board of directors. It is not wise to antagonise the Russian government: last week assassins were allegedly sent into the US to kill the man who betrayed a Russian spy ring earlier this year. Distance may be advisable.

Equally, although much has been done to clean Gazprom up, lingering accusations of corrupt management practices at the parent company remain.

2) Pay

Although Gazprom pays well, headhunters say it doesn't pay that well. "I've tried to place people there and it quickly becomes apparent that they just don't have the money," alleges one commodities headhunter.

3) Mostly hires from oil majors

Many of the traders working at Gazprom Marketing and Trading have a background in Shell and Total. Few come from banking. "They haven't really hired any big P&L generators," alleges the headhunter.

4) Most new jobs are in the middle office

Right now, Gazprom Marketing and Trading is advertising 14 jobs. Five are in IT. Three are in risk. One's in compliance, one's in accounting, and one's in internal affairs. As far as we can see, only one is for a trader and one is for a front office analyst.

AUTHORSarah Butcher

Global Editor

Io
Ionic27
25 November 2010
2pole and 2peter,
Russian business environment is rather open nowadays and actually welcomes foreigners. Some of western bankers made marvellous careers here. This is just one of the examples, but google Stuart Lawson's name, for instance. He is now a retired banker who decided to stay in Moscow to read lecturesto students in Moscow's newly-formed business school
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Io
Ionic27
25 November 2010
I think what foreigners are gonna find most stressful in Gazprom is their corporate culture. I mean it 'cause I have experience of work in both post-soviet and in international environment. The cultural difference is just huge. The level of responsibility is also expected to be high as Gazprom bosses will definitely try to squeeze out of you all your professional knowledge and your experience in western markets
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St
Stanley
16 November 2010
If you're in Russia (and not talking about at Gazprom), politicians' demand for bribes is the only thing you, unfortunately, have to comply with if you are to avoid being imprisoned.
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St
Stanley
16 November 2010
Stress arising as a result of compliance work in a company that represents a lawless country? Are you kidding? The rule is that there are no rules, making it impossible and even unnecessary to comply with anything.
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Gu
Guest1010
16 November 2010
Could anyone comment about the workload in Gazprom, especially in accounting and compliance departments? Shall anyone expect peaceful living or permanent stress working there? Any other drawbacks?
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