Russia will not merge two energy giants and is going to open the way to lifting restrictions on foreign investment in shares of OAO Gazprom, according to the Wall Street Journal.

Some analysts are skeptical about the move calling it a failure of president Putin to control some powerful members of his inner circle in the wake of public support that Putin gave to the project.

Igor Sechin, Rosneft’s Chairman and deputy chief of staff in the Kremlin, regarded the move as a small victory of the company’s management against the merger announced by Putin in September.

Rosneft acquired Yuganskneftegaz, former subsidiary of once Russia’s biggest oil company, YUKOS, in December 2004 amid the bankruptcy filing and the trial of Mikhail Khodorkovsky, once Russia’s richest man and YUKOS owner, and his partner Platon Lebedev that is expected to end up within days. Prosecutors demand up to 10 years in jail for Khodorkovsky.

Earlier, the Kremlin planned to contribute its 100% stake in Rosneft to Gazprom in exchange for about 11% of Gazprom’s stock now held by the gas company’s subsidiaries with the possibility for the government to hold up to 50% of Gazprom.