Igor Yusufov: Expert in Energy

The energy industry is vital for every country. In some counrties, it tends to be twice as important because it is one of the leading oil and gas exporters on the global scale. A person supervising the development of this sector bears enormous responsibility as it impacts millions of people. In this article, we’ll focus on life and achievements of Igor Yusufov — energy minister and successful manager.

Brief Bio

Igor Khanukovich Yusufov was born in Derbent, USSR. He graduated from the Energy Faculty of the South State Polytechnic University named after Platov. In 1979, when he was 23 years old, Igor Yusufov started it career 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 Igor Yusufov was invited to the civil service. After retiring from public office in 1994, he continued his career as CEO of public-private partnership “R.-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 public service as Deputy Minister of Industry.

Until 2001, he held high positions in the Presidential Administration and the Government. For 3 years, he headed the Federal Agency of the State Reserve.

In 2004, he resigned as Minister of Energy and since 2008 focused on private business. At that period, he actively tried to initiate cooperation with the Export-Import Bank of the United States and expand its partnership with 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 any more.

Specifics of the Industry at the Turn of the Century

At the advent of the 21st century, multiple problems had accumulated. Irrational management had 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 international market.

At the beginning of the 2000`s, 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 Igor Yusufov`s guidance, a part of the business in the energy sector came back under the state control. Phased reconstruction of power plants with the replacement of outdated equipment began. Thanks to the reconstruction, the volume of electricity generation in the country nearly doubled.

At that time, a concept of 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 processed products instead of raw materials. He emphasized that at key facilities, it was advisable to use locally produced equipment rather than imported analogues.

On international scale, he conducted successful negotiation with OPEC countries on reducing oil exports. This was a beneficial decision for the global market.

Two Summits

Igor Yusufov, businessman and statesman, was instrumental in organizing two energy summits. Both events played a major part in improving the relations between the two states.

The first one took place in 2002 in Houston, the oil capital of America. Top state officials, heads of large companies, scientists and other profile specialists were among the representatives. One of the most noteworthy topics discussed was a strategic stability on global markets.

Next year, the second summit welcomed its attendees in St. Petersburg. It highlighted the need for creating intergovernmental commission on cooperation in the field of LNG production. A necessity of a $500-billion international investment in the countries’ energy industry was discussed.

At both summits, experts discussed the perspectives of alternative energy, support for small and medium-sized enterprises in the sector and 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 international cooperation. It is impossible to underestimate his contribution to the development of the energy sector.