Founded in 1992, Gazprom is a powerful Russian conglomerate and a central tool in the Kremlin's global power plays. As the world's largest natural gas producer – holding a third of global reserves – Gazprom controls production, distribution, and sales. Uniquely, the company brings together industry experts with government officials close to the Russian president. In the winter of 2005-2006, Europe, reliant on Russia for 30% of its gas, was abruptly reminded of its dependence. Russia suddenly halted gas deliveries to Ukraine, then led by Viktor Lushchenko, over unpaid tariffs. This event, combined with rising oil prices and increasing demand from China, solidified the importance of Russia's hydrocarbon resources.
