Russian company towns are similar to the US company towns of fifty years ago. But today, they’re dying too:
Gazprom has quietly begun cutting back on the Soviet-style paternalism for which it is renowned, hiving off “social assets” such as nurseries, subsidised housing and sanatoriums. Already almost half of its 9,320 “social properties” have been handed to local authorities. The mothership is sailing, and some of her dependants are to be left to fend for themselves.
Gazprom is under pressure from its shareholders (yes, there are some that aren’t based in the Kremlin) to cut such generous subsidies. They don’t look good on the end of year balance sheet.
The problem is, towns in the frigid Russian Arctic, like Novy Urengoy, traditionally attracted workers to their harsh climate by offering high wages, and the prospect cradle to grave support for workers and their families.
If that support goes, who actually will work the world’s coldest oil and gas fields?






