"It's necessary to reform Gazprom and strengthen the role of the state. We have to understand that the talk is about consolidation of oil and gas resources. Capitalization of Gazprom should be raised as well as the role of the state in this should be raised," the premier told journalists on Friday.
Mr. Fradkov also spoke for transparency of the makeup of Gazprom shareholders. "Strategically, transparency should prevail," he said.
Besides, the premier voiced the impossibility to reform the electric energy industry and the gas sector at the same time. "Electric energy and gas cannot be reformed simultaneously," Mr. Fradkov said.
Speaking about the difficulty to reform Gazprom, he said: "There is a lot of cross-subsidizing there. This cannot be resolved at once."
Mr. Fradkov also said that the decision to create a pilot wholesale generating company (OGK) No. 5 must be taken by RAO UES of Russia's Board on its own, without a government directive.
"I gave my verbal consent. As regards the creation of the fifth OGK, a government directive is not needed," said the premier.
In his words, the state will not interfere with the decision of the energy holding's Board's decision to create the fifth OGK, which will be considered on September 3.
The premier said he pays close attention to the reform of the electric energy industry. In particular, he said, a working group on electric energy has been established, which includes Industry and Energy Minister Viktor Khristenko, RAO UES CEO Anatoly Chubais and Oleg Deripaska, the Board Chairman of the Bazovy Element and Rusal companies.
"There's a lag on the [electric energy] reform," the premier said, meaning the serious complex of issues on that problem.
"It is not ruled out that they [RAO UES management] have felt it themselves [that this complex of issues exists] and started correcting their actions," he added.
In the beginning of this week, investment companies, who came to possess materials prepared for the RAO UES Board council, reported that the energy holding assesses the authorized capital of the future OGK-5 at 29.4 billion rubles (about $1 billion), which experts believe is just.
The issue of the Svyazinvest company privatization is almost predetermined, the premier told journalists.
Svyazinvest is likely to be included in the privatization plan for 2005. "As for the sale of this company's state package of shares, this issue is almost predetermined," said the prime minister.
In his words, the procedure of privatization will be discussed.
The premier noted the necessity of more active efforts taken on the part of federal officials with regional authorities.
The premier said that government members, including him, should visit regions more often.
Mr. Fradkov also said he will meet with governors more often, at least with two a week. "It's necessary to know what goes on [in the region]," he noted.
