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New import substitution department launched at Gazprom Neft

A new department focusing on technological partnerships and import substitution has been established within Gazprom Neft. The core objective of this new department will be the consistent and ongoing monitoring of the Russian market in order to identify Russian-produced goods and materials that can replace similar imported products. The department — which has been charged with resolving practical problems in diversifying the supply chain, and which is expected to show swift results — falls within the Purchasing & Capital Construction Directorate at Gazprom Neft.

In order to stimulate the import-substitution process, and to promote the company’s independence in terms of technology, specialists within the department will study proposals received from Russian producers, and work closely with these in developing new goods and materials as required for the company’s own operations. Russian suppliers will have the opportunity to expand their product ranges in line with specific Gazprom Neft projects in oil production and refining. Technological partnerships of this kind will lead to a greater concentration of cutting-edge R&D operations within Russia, and the production of various goods and materials directly competitive with foreign equivalents on both the international and domestic markets.

Gazprom Neft has, prior to this, undertaken proactive initiatives in import substation throughout various aspects of its business, drafting a list of alternative suppliers, entering into a range of strategic alliances with Russian enterprises, and establishing working groups responsible for evaluating various markets.

Head of Purchasing and Capital Construction Abdulla Karaev commented: “We have long been working very closely with Russian producers, who have proved highly responsive to our needs, offering high-quality products adapted to the demands of our business. For that reason, around 95 percent of our procurement spend goes to Russian suppliers. Effectiveness and efficiency underpin our procurement policy throughout, and we are committed to building mutually beneficial working relationships, in the long-term.”