Led by Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee, Gazprom’s delegation has undertaken a business trip to Russian regions and paid a visit to machine building and pipe manufacturing companies, which produce equipment for Gazprom’s needs.

Gazprom’s delegation included Bogdan Budzulyak, Member of Gazprom's Management Committee, Head of Gazprom's Gas Transportation, Underground Storage and Utilization Department as well as top managers and specialists of Gazprom and Gazkomplektimpex’s structural units.

The delegation paid a visit to Ufa Engine Building Production Association (city of Ufa) manufacturing aircraft engines used for the gas-pumping unit production; Perm Engine Company, Iskra-Energetika and Iskra-Turbogaz (city of Perm) designing & producing gas turbine equipment; Vyksa Steel Works (town of Vyksa, Nizhny Novgorod region), which is one of the largest Russian producers of all-type pipes including large diameter pipes.

In the course of the meetings the parties repeatedly emphasized that Gazprom and Russian machine builders’ joint businesses were targeted at organizing the manufacture of competitive domestic products.

“As of today it is highly important for Russian gas equipment producers both to turn out high-quality output and commit substantial investment in new technology. This is indispensable for the manufacture of new-generation equipment able to meet Gazprom’s most rigid requirements and compete with the best foreign counterparts now and in future” stressed Alexander Ananenkov during a meeting at Perm Engine Company’s premises.

A meeting with top managers of Vyksa Steel Works underscored that Russian pipe companies had achieved considerable progress in the production of large diameter pipes. However, there is still a need for Russian pipes to be manufactured in sufficient quantities and without imported components.

A further step is production of large diameter pipes with improved technical specifications. This is particularly important given Gazprom’s projections to implement sweeping projects including the North European Gas Pipeline construction and Yamal megaproject.

While visiting Bashtransgaz, Permtransgaz and Volgotransgaz, Alexander Ananenkov held meetings on the structural reform of said companies. As it was emphasized, having spin-off repair & maintenance services would help both enhance the financial transparency of subsidiaries and develop the market mechanisms of the United Gas Transmission System maintenance.

In the course of the business trip Alexander Ananenkov also met with Murtaza Rakhimov, President of the Republic of Bashkortostan and Oleg Chirkunov, Governor of the Perm Territory. The parties addressed potential cooperation between Bashkir & Perm machine building companies and Gazprom as well as issues surrounding the implementation of existing cooperation agreements between Gazprom and said regions.

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Gazprom is first and foremost oriented towards home-made output procurement. At the same time, the Company is placing the strictest demands on the quality of domestic and foreign equipment.

Gazprom’s Board of Directors has endorsed the Provision on the Procurement Regulations for Gazprom and its Subsidiaries.

The Document stipulates only openly-held tenders. Two-phase biddings are summoned if a tenderee is unable to come up with detailed technical specifications and has to perform a preliminary study of potential suppliers’ propositions. Sole-source awarding of supply contracts is clearly specified in the Provision as well.