Russian gas giant bids to be Olympics sponsor

Russia's biggest company is in talks to become a major sponsor of the London Olympics.

Gazprom, the world's largest gas supplier with a £30 billion annual turnover, has emerged as a rival to Shell and BP to become an official 2012 partner.

Games chiefs hope to clinch a £60 million-plus deal in the oil and gas sector within months, and the successful bidder will have exclusive Olympic marketing rights in Britain.

Sources says marketing chiefs from Gazprom have made several approaches to the 2012 organising committee, Locog, to try to clinch a deal.

If they succeed it would cement Russia's association with British sport following Roman Abramovich's takeover of Chelsea, and the purchase by oligarch Alisher Usmanov of a stake in Arsenal. Alexandre Gaydamak, son of Russian billionaire Arcadi Gaydamak, owns Portsmouth FC.

Billionaire Usmanov is president of Gazprom Invest Holdings and oversees foreign investment projects. He is also a keen sports fan and president of the European fencing federation - though he is not thought to be close to the 2012 negotiations.

Gazprom was a generous financial backer of Russia's successful bid to host the 2014 Winter Games in the ski resort of Sochi. It also sponsors Russian football team Zenit St Petersburg and German club Schalke 04.

A Gazprom spokesman said: "We are involved in a number of sports sponsorshipsand aim to continue our backingof Sochi. An Olympics sponsorship is a big undertaking and requires careful consideration."

Although Locog might prefer Britishbased companies, its main priority is to raise about £650 million from sponsors and it has already struck deals with German sportswear firm adidas and French energy supplier EDF Energy.

However a deal with Gazprom may be problematic for political reasons. The state-owned company faced international criticism two years ago after it cut off supplies to neighbouring Ukraine in midwinter, after the pro-Russian government in Kiev was ousted in the Orange Revolution.

Meanwhile relations between Britain and Russia under Vladimir Putin's regime have slumped in recent years.

London Olympic chiefs have already lined up several major sponsors. Last month Deloitte became the fourth official partner in a fast-tracked deal, as Games organisers urgently needed their accountancy and human resources expertise.

Lloyds TSB has joined EDF and adidas as major sponsors. Locog aims to sign two more before the Beijing Olympics, probably in the telecommunications as well as the oil and gas sectors.

Games chiefs are also seeking a supermarket for the "clothing and homeware" sector, and an "official beer".

They insist their search is not being hampered by the bleak economic outlook, believing companies will take a long-term view about whether a minimum £40 million investment is good value.