Stepan Derezhov
From 1966, worked at the Gas Industry Ministry of the USSR, first as the Head of the Department for Advanced Gas Production, Storage and Transportation Equipment, then as the Head of the Administration of Foreign Economic Relations; from 1977 – Deputy Minister of the Gas Industry.
“He opened the door for international cooperation”
Flexibility in negotiations leads to mutually beneficial cooperation
Sabit Orudzhev took a very scrupulous approach towards foreign economic relations within the industry. He saw that the stability of foreign economic relationships was in many ways essential to the growth rate of the country's gas industry, which unfortunately lacked numerous types of spare parts, units, construction machinery and other technical equipment. Loans in the form of equipment, such as pipes, were taken in exchange for gas supplies. Meanwhile, a part of the loans went to other branches of the USSR economy. By doing so, the gas industry facilitated the development of other ministries and government departments, but first of all, it ensured its own development. This was because the loans were granted for several years, and by the payoff time Gazprom would already make up for the bulk of its future expenses.
Cooperation with the USSR was beneficial for Western countries because they used their finished goods as payment for future gas supplies, thus fostering the development of their own manufacturing sectors.
The result of this was that Soviet gas exports reflected the interests of different parties, making it possible to find solutions of mutual benefit.
The most important negotiations with foreign partners were conducted by Mr. Orudzhev in person. He was an exceptionally talented and flexible negotiator. With his Eastern sense of tact and a sophisticated sense of humor, Mr. Orudzhev was a captivating speaker. He would often use pointed quotes from Omar Khayyam, which broke the tension and made the meetings less formal. In this environment, the parties were more willing to compromise, and important decisions were made more quickly.
Sometimes, Mr. Orudzhev took a very tough stance, especially when it came to prices or some loans that were unfavorable for the country. In such cases he would stand his ground adamantly. Especially hard were the negotiations with the French, but they had a successful outcome thanks to the clear stance of the USSR minister.
In summary
In the period when Sabit Orudzhev was in charge of the industry, the number of foreign countries to which the USSR exported its natural gas rose from three to nine, and in 1981, annual exports reached 59 billion cubic meters of gas. On top of that, contracts were signed with the German Democratic Republic and Czechoslovakia to supply another 7.8 billion cubic meters of gas to those countries starting from 1985. As a result, by the 1980s, the USSR became a leading exporter of natural gas to Central Europe.
While Alexey Kortunov (the first head of the Gas Industry Ministry of the USSR) was the one who gave the gas industry a window to the world, it was Sabit Orudzhev who threw open a door for broad international cooperation within the industry, thereby spurring its development.
