( CNN ) -- Gazprom is the world 's biggest producer and exporter of natural gas -- and Russia 's most powerful company . Gazprom 's current chief executive , Alexey Miller . It controls 20 percent of the world 's natural gas reserves and operates the world 's largest gas distribution network -- approximately 157,000 kilometers of pipelines covering an area from Europe to the Far East , according to its Web site . Gazprom exports energy to 32 countries and provides around 25 percent of the European Union 's gas supplies . Last month it reported an 85 percent increase in net profits to $ 20.8 billion for the first six months of 2008 . In 2007 it reported annual profits totaling nearly $ 61 billion . In 2008 the Financial Times placed it fourth on its list of the world 's top 500 corporations , as ranked by market capitalization . Formed in 1989 to replace the Soviet Ministry of the Gas Industry , Gazprom is closely tied to the Russian government , which owns a controlling 50 percent stake in the company . Current Russian President Dmitry Medvedev is a former Gazprom chairman . In recent years , an increasingly confident Moscow has used Gazprom to assert its authority over Russia 's former sphere of influence by offering heavily subsidized gas to ex-Soviet countries such as Ukraine and Belarus . But that policy has led to disputes as Gazprom has then sought to raise prices . Gazprom last week switched off gas supplies to Ukraine for the second time in two years in a row over payments and Kiev 's rejection of a proposal which would have increased the cost of gas to $ 250 per 1,000 cubic meter . Instead Gazprom said Ukraine would have to pay the full market rate of $ 418 dollars per 1,000 cubic meter . Other countries including Austria , Bulgaria , the Czech Republic , Germany , Romania , Greece and Turkey have complained that their gas supplies have also been affected at the height of demand as winter temperatures dip well below freezing in many places .
Russia 's Gazprom one of world 's most powerful energy companies . Comment: Russian government owns controlling stake ; Company made $ 61B last year . Kremlin has used Gazprom to exert influence over former Soviet states .