Final Word from Tuesday, October 4, 2005
Jiří Paroubek is often being compared to Gerhard Schröder, but there's also an affinity to Vladimir Putin. While the Russian president is renationalizing the energy sector, Paroubek is Putinizing ČEZ. His most recent move was to allow ČEZ to buy the Severočeské doly mines for a bargain price. Conveniently, ČEZ is taking control of Severočeské after having already signed long-term coal contracts with it and before an expected extension of the coal-mining limits is approved. The world is criticizing Putin for his renationalization of Yukos and Sibneft, but Paroubek's version of the concentration of energy wealth is being met with a sharp jump in ČEZ's share price. There's virtually no criticism, because so many speculators, brokers, analysts, bankers, advisers, managers, journalists and politicians are profiting from Super ČEZ and don't dare bite the hand that feeds them. [Czech Republic electricity]