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Gazprom signs long-term contracts with manufacturers

Gazprom CEO Alexei Miller has signed long-term agreements with Russian equipment and pipeline manufacturers

“The long-term agreements provide for setting up full-scale manufacture, procurement and maintenance of import substitution products to be purchased by Gazprom in agreed amounts for years ahead, “ Gazprom says. “We are introducing a new form of cooperation with manufacturers of import substitution products. They will get long-term and – what’s most important – predictable financing and a guaranteed sales market. In its turn, Gazprom will have reliable supplies of high-quality equipment at competitive prices,” Miller says.

The contracts were with the Pipe Metallurgical Pipeline Company and Tomsk Machine-Building Technologies.

The agreements guarantee that Gazprom will buy import substitution products from Pipe Metallurgical Company and Tomsk Machine-Building Technologies, the latter being a special-purpose vehicle set up equally by Gazprom Investproject and Tomsk Vakhrushev Electromechanical Plant.

Pilot samples of these products have been successfully tested at Gazprom’s facilities for compliance with corporate and national standards and passed the economic test. Gazprom also said the manufacturers had spare capacity in place to meet their commitments.

Some products are already 100% domestically manufactured, and it is planned to bring the output of other products to at least 90%, too. In future it will allow Gazprom to fully give up the purchase of similar products from foreign companies.

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