In order to invest smartly in Gazprom binary options one needs to understand how Gazprom operates, and in order to do that you should probably go back to the late 80’s when the U.S.S.R and entire eastern block of nations was collapsing, Gazprom was actually created in 1989 on the ashes of what used to be the Soviet ministry of gas, and although the company was later privatized, the Russian government maintains a controlling interest in it to this day.

After beginning its privatization in the early 90’s Gazprom began to establish control over several aspects of the Russian market and economy, at its peak, it had former chairman Viktor Chernomyrdin as prime minister looking over its interests which was of great service to the young company.

Allowed to run unchecked, Gazprom began to distribute assets to various relatives and close partners of Chernomyrdin and company CEO Rem Viakhirev, the company also evaded taxes and dividend payments to its primary shareholder – the Russian government for years, saving itself millions, and creating a shortlist of uber-wealthy people known as oligarchs who reaped great profits from the multi-billion dollar a year company.

The party came to a screeching halt in 2000 when Vladimir Putin was elected president of Russia, one of his main aims was to stop or at least diminish the control these oligarchs had over Russian companies and its economy.

Putin Immediately fired Chernomyrdin and Viakhirev and replaced them with his own people; he also proceeded to buy back the assets Gazprom had sold off to individuals, when he could not buy assets back he used other, less reputable business tactics to regain control of the company’s assets, in one case, he used his control over Gazprom’s pipeline to deny access to another company, thereby forcing it into bankruptcy, at which point that company “agreed” to sell back the assets it had gotten from Gazprom’s previous management.

Now back under complete government control, Gazprom continued to strengthen itself, selling some stock and becoming fully open to foreign investors, it also received a boost from the government in the form of a 2006 law that granted it complete and exclusive rights on all Russian gas exports further insuring Gazprom’s profitability for the future.

Gazprom also purchased either partially or in full, shares in western oil and gas companies and gas fields in various locations such as Austria, and began building pipelines to China and Europe, both on long term agreements that ensure supply of gas exclusively from Gazprom controlled gas fields.

At present, Gazprom is the largest gas extracting company in the world, responsible for about 17% of world-wide production, it also produces 32 million tons of oil per year, it has nearly half a million employees globally and over 158,000 Kilometers of gas trunk lines spreading to various locations, its annual revenue is roughly $150 billion per year.

Gazprom’s future, while slightly speculative, seems rather promising, it is greatly invested in the research and location of a few massive gas fields which seem promising and it has also diversified its holdings to include anything from aviation companies to TV stations as well as other industrial companies in a few areas.

Since Gazprom is control by the Russian government for the most part, if you intend to invest in Gazprom Binary options, you need to add varying degrees of worry about global reactions to various Russian economic conditions in addition to the usual and predictable main areas of concern such as supply and demand issues, local and global political issues and other aspects of trade.

The reason for the increased attention to Russian politics and attitude towards the west stems from the fact that while Russia is officially an ally, its financial interest do not always best suit or serve western interests, and that could have potential impact on business dealings with Europe and the US, or damage relations with China and other eastern leaning states that Russia still favors from time to time.

With interest in the east and the west and a seemingly never-ending supply of gas, Gazprom makes for a wise binary options investment, just make sure they don’t nationalize your profits off those trades!