About Yuri Shafranik

A Native Siberian, Yuri Shafranik was born on February 27, 1952, into a family of workers in the village of Karasul in the Tyumen Region. After completing his high school studies, he moved to the city of Tyumen, where he enrolled in, and in due course graduated from the Tyumen Industrial Institute with two master's degrees: electrical engineering in the field of automation and telematics, and mining engineering in the field of complex mechanization of oil and gas field development. In 2006, he obtained a PhD in Economics.

After graduating from the Tyumen Industrial Institute, Yuri Shafranik made a successful professional career in the oil industry, moving up through the ranks from a technician to the General Director of one of the largest oil producers of the time, an industrial group called Langepasneftegaz, which he himself founded.

In 1990, Yuri Shafranik won the elections and became the Chairman of the Tyumen Regional Council of People's Deputies. A year later, in September 1991, he was appointed Governor of the Tyumen Region by the decree of the President of the Russian Federation. At that point in time, the region was the pioneer in all innovations in mineral resources management. Notably, it was during Yuri Shafranik’s time in office that the paid mineral resources management was introduced in Russia's oil and gas sector. He also became one of the backers and co-authors of the Underground Resources Law.

Among Yuri Shafranik’s great successes was the drafting of Decree No. 122 "On the Development of the Tyumen Oblast," which was signed into law by the President of Russia. The document defined the strategic directions for the region's development: an introduction of paid mineral resources management, the formation of vertically integrated companies, the establishment of market oil pricing mechanism, and the creation of the Regional Development Fund. Decree No. 122 had a major impact on the region's socioeconomic development. The proceeds from the mineral resources management were used primarily for the development of the healthcare system. For example, some of the proceeds were spent on opening a multidisciplinary clinical hospital and a pharmaceutical plant. In addition, much attention was paid to updating the agricultural sector and developing the small and medium-sized businesses.

Two years later, Yuri Shafranik was appointed Minister of Fuel and Energy of the Russian Federation. He held this position from 1993 to 1996, and during his time in office, he organized the structural transformation of the oil and coal industry as well as the electric power industry. With his help, and as a result of these structural changes, these sectors have been able to fully transition from planned to market economy.

Yuri Shafranik reformed the fuel and energy sector, shifting it to market-driven operations, and actively promoted the adoption of the Production Sharing Agreements Law (1995), which became the framework for implementing such major international projects as Sakhalin-1 and Sakhalin-2. The partners on Sakhalin-1 were Sodeco (Japan), Exxon (USA), ONGC (India), and Rosneft (Russia). The partners on Sakhalin-2 were Royal Dutch Shell (British-Dutch), Mitsui (Japan), Mitsubishi (Japan), McDermott International (USA), and Marathon Oil (USA). The partners on Caspian Pipeline Consortium (CPC) were Chevron (USA), Mobil (USA), Agip (Italy), British Gas (UK), Oman Oil Co (Oman), KazMunayGas (Kazakhstan), and LUKoil (Russia).

"In 1995, Exxon, being daring and convinced of the benefits of our potential cooperation, made a bold move and came to Sakhalin," recalls Yuri Shafranik in one of his interviews. "At the time, the island was such a depressing sight that it would've been verging on the criminal to delay the development of its resources and, with it, the economic transformation of the island. Having reached an agreement with this prominent company, we managed to attract multi-billion dollar investments, to obtain a fair amount of oil and gas, and to give constructive meaning to the life on Sakhalin."

Another one of Yuri Shafranik’s many noteworthy achievements was his role in the Gore-Chernomyrdin Commission's Energy Agreements. The collaboration between Russia and the United States in the field of the fuel and energy complex was supported by the heads of relevant departments of the two powers: the U.S. Secretary of Energy Hazel O'Leary and the Russian Fuel and Energy Minister, Yuri Shafranik.

Environmental Policies

These agreements included improving the safety of nuclear reactors and increasing the efficiency and productivity of Russian natural gas extraction. They also tied into the Commission's environmental policies, which included reducing pollution and its carbon footprint.

BUSINESS ACTIVITIES

In 1996, Yuri Shafranik left his political career and turned to public and business activities. In 2000, he founded the international group SNG, of which he has been the Chairman of the Board. He is also the founder of several non-profit organizations.