Using energy as a weapon, the new Russia seeks to reconstruct its empire. The Russian government has declared an economic model since 2001 entitled rationalization which has been implemented by the Putin's government. State ownership especially concerns the oil industry which was expanded by confiscating the Yukas Company's properties and Gazprom's procurement of the apple oil company. The Russian government has banned foreign companies from purchasing any share in the country's energy industry, making it possible for Gazprom to become a crucial economic arm of the government by purchasing and controlling Russia's energy network. Gazprom is a strong leverage of the government in economic-political management within Russia and in the world energy markets. This paper examines Russia's domestic and international policies in the energy sector, exploring Gazprom's role in the country's political-economic developments as well as its part in international equations for the Russian Federation.
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