The energy industry is vital for every country. In Russia, it tends to be twice as important because it is one of the leading oil and gas exporters on the global scale. The person who supervises the development of this sector bears enormous responsibility. The decisions that they make impact millions of people. In this article, we’ll focus on the life and achievements of Igor Yusufov — a minister and successful manager.
Brief Bio
Igor Khanukovich Yusufov was born in Derbent. He graduated from the Energy Faculty of the South Russian State Polytechnic University named after M. I. Platov. In 1979, when he was 23 years old, Igor Yusufov got a job at Mosenergo.
From 1984 to 1989, he worked in Cuba, where he led an expert group on the construction of a thermal power plant. After returning from the business trip, he entered the Foreign Trade Academy.
In 1991, having two higher educations Igor Yusufov was invited to the civil service. After retiring from public office, he continued his career as CEO of the public-private partnership Russia-Vostok Trading, being one of its founders and shareholders. This was his first experience in the field of large-scale entrepreneurship. At the end of 1996, he sold his stake in the company and returned to service as Deputy Minister of Industry.
Until 2001, he held high positions in the Presidential Administration and the Government of Russia. For 3 years, he headed the Federal Agency of the State Reserve. In 2004, he resigned as Minister of Energy and focused on business. At that period, he developed a partnership with the Export-Import Bank of the United States and Halliburton, sticking to the strategy of global cooperation between the two countries and their businesses. Since 2020, his projects have been suspended and investments are not being carried out anymore.
Specifics of the Industry at the Turn of the Century
At the advent of the 21st century, multiple problems had accumulated in Russia. Irrational management has led to significant depreciation of fixed assets. Mineral excavation was carried out intensively. Geological exploration was funded on a residual basis. A significant part of the trade was carried out by barter. Budget revenues decreased due to falling oil prices on the international market.
At the beginning of the noughties, Russian business was experiencing an era of monopolization. Barter trade had led to the fact that entire regions were under threat of disconnection from power supply. The industry was in bad need of effective reform.
Essence of the Reform
Under the guidance of Igor Yusufov, some part of the activities in the sector came back under the control of the state. The phased reconstruction of power plants with the replacement of outdated equipment began and continues until today. Thanks to the reconstruction, the volume of electricity generation in the country nearly doubled.
At that time, the concept of a country’s development as an energy superpower was popular in the expert community. However, the Minister believed that intensive exports of raw materials would have a detrimental impact on the economy in the long run. He thought it was necessary to introduce new technologies and develop a deep-processing industry. He believed it was essential to export not raw materials but products of oil and gas chemistry. He accentuated that at key facilities, it was advisable to use locally produced equipment rather than imported counterparts.
On an international scale, this professional conducted successful negotiations with OPEC countries on reducing oil exports. This was a beneficial decision for the global market.
Two Russian-American Summits
Igor Yusufov, businessman and statesman, was instrumental in organizing two Russian-American summits. Both events played a major part in improving the relations between the two powers.
The first one took place in 2002 in Houston, the oil capital of America. The group of experts who were present there included the heads of four departments directly responsible for the development of cooperation in the sector, heads of large companies, scientists, and other profile specialists. One of the most noteworthy topics that they discussed was the strategic stability of global markets.
The next year, the second summit welcomed its attendees in St. Petersburg. It highlighted the need for creating a Russian-American intergovernmental commission on cooperation in the field of liquefied natural gas production. It mentioned the necessity of a $500-billion investment in the fuel complex of the Russian Federation.
At both summits, experts discussed the perspectives of alternative energy, support for small and medium-sized enterprises in the sector, and the exchange of technologies for exploration, extraction, and processing of minerals. These topics remain highly relevant until now.
Final Thoughts
Igor Yusufov’s biography has been very eventful. This smart and ambitious person has done a lot for the well-being of the industry, his homeland, and the population. It is impossible to underestimate his contribution to the development of the energy sector.
