Russia is often described as not caring about its public image and usually does not give such a big importance to world public opinion. Things seem to be changing these days.
The truth is that Russia’s attempt to polish its image is not intended to mass opinion but to foreign investors and especially energy investors.
Russian government has for instance hired the US PR company Ketchum Inc, based in New York, to provide “communication support” during the 2006 G8 summit.
Russia paid 2 million dollars for this “support” but signed other lobbying contrqct with Russian government since them, the purpose of which was to focus on WTO countries such as UK, France, Germany or Japan.
But as you can read below, Russian public companies are much moire active than Russian government when we talk about PR and lobbying:
The most lucrative contracts have been awarded by Gazprom, the Russian state-owned gas company, to Gavin Anderson and Company, which was founded in New York in 1981. In March 2007, Gazprom began paying Gavin Anderson $100,000 per month to “provide financial media relations” and to “improve understanding of Gazprom’s basic business strategies. Strengthening the trust of investors in Gazprom”. Gazprom apparently felt that negative information about its practices and opaque dealings were hurting the company and it was willing to pay a high price to remedy the situation.
GazpromExport, a fully owned subsidiary of Gazprom, also joined these PR activities in 2006-2007, choosing Ketchum to do its PR – not Gavin Anderson. The reasons for this are unknown, but it might indicate that the CEO of GazpromExport, Alexander Medvedev, was more comfortable with Ketchum, a company which seemingly is favored by Prime Minister Vladimir Putin.
FARA was notified by Ketchum in August 2007 that GazpromExport would pay $247,500 per month ($147,500 more per month than its parent company, Gazprom, was paying Gavin Anderson) for their services. Ketchum’s description of these services was brief: “Ketchum will pursue various activities, including arranging interviews between representatives of Gazprom and members of the media … monitoring media coverage.”
Ketchum subsidiary GPlus Europe was hired by the Kremlin in 2007 to improve media relations. They signed a deal for media handling and government advocacy that included GPlus’s work in Brussels and Paris as well as subcontracts with consultancies Dimap in Berlin and Reti in Rome. GPlus was also hired by GazpromExport to promote the concept that Gazprom and GazpromExport are fully transparent entities. The GPlus team working on the GazpromExport contract consists of 14 individuals, with four members concentrating on PR within Germany alone.
The leader of the GazpromExport team at GPlus is allegedly Milina Moncekova, who accompanies Alexander Medvedev on his trips throughout Europe. Other members of the team have responsibilities for PR within the rest of Europe. The head of the team in Germany is Peter Witt, formerly the German deputy permanent representative to the European Union.
A leading member of the team working the account is Gregor Kreuzhuber who, according to the GPlus Europe website, “Spent over ten years in the European Commission as a spokesperson and political adviser to two different commissioners. Kreuzhuber’s last post was with the Commission Vice-President in charge of Enterprise and Industry Gunter Verheugen.”
According to the European Observer, “No one takes a pay cut to join the PR sector. A mid-ranking EU official such as Kreuzhuber would take home at least 6,000 euros [US$8,600] per month in his previous job and an individual such as Witt 7,000 euros per month.”
Nonetheless, GPlus was not only whitewashing GazpromExport, according to PRWeek, in 2008. GPlus was criticized by Brussels-based PR firm Aspect Consulting for promoting Russia’s view of the war with Georgia and for being part of the Russian “propaganda” machine. Aspect Consulting, hired by the government of Georgia, told PRWeek, “There are agencies that work for Russia … but I do not know how they can be comfortable about that.”
On January 25, at the height of the Ukrainian-Russian gas dispute, GPlus was suspended from the European Union’s lobbying register for failing to disclose the identity of three clients. Peter Guilford, one of GPlus’s founders, said the firm had informed the commission in December when it first joined the registry that it had pre-existing confidentiality agreements with three clients, who did not want their names disclosed. Two of those clients are no longer represented by GPlus.
“We have been super-transparent,” Guilford said, noting that the clients in question included two trade associations and one corporation. Ketchum’s reputation might be further discredited as new information is revealed in the media about Gazprom’s dealings in the gas trade.