Russian Gazprom

The Board of Directors of Gazprom has made an amendment to the provision on procurement which now provides for purchasing mostly domestic equipment, except the cases where Russian counterparts do not exist. That includes products made of metal, engineering products, including special equipment.

The replacement list includes 410 foreign suppliers from 20 countries, a quarter of which are the companies located in the United States, Germany, France, UK and Japan.

A source explained that Gazprom import substitution program is designed to replace the procurement of products manufacturers by the countries that have implemented or supported the sanctions against Russia. However, the list also includes Belarusian, Israeli, Indian and Ukrainian companies.

Every year, Gazprom spends on foreign purchases about 154 billion rubles ($ 2.5 billion), which is about 21 percent of the capital expenditures of the company.

In February, Gazprom announced the establishment of the new Department of Technical Policy, which will deal with import substitution. The new division is headed by Pavel Krylov, and it is overseen by the Deputy Chairman of the Board Vitaly Markelov.

At the end of January it became known that the European Union is discussing the possibility of prohibiting export to Russia of some types of equipment, including for gas industry. In addition, the ban on equipment export for this industry can be introduced even despite the fact that Europe is dependent on Russian fuel supplies.

Previously, the EU imposed restrictions on exporting to Russia equipment and technologies for working on the Arctic shelf and production of shale oil (several kinds of pipes, drilling equipment, support vessels, drilling platforms and oil pumps), which practically did not affect the gas industry.

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