The Western sanctions have left Gazprom largely unaffected and have had little bearing on the Company's ongoing activities, reported Gazprom on August 23, 2016.
In 2014 Gazprom saw the sanctions as an opportunity to develop products they have long relied on the West to deliver.
«We have the opportunity to replace a large amount of technology and equipment that fall under sanction in a short period of time,» said at that time Russia’s Deputy Energy Minister Kirill Molotsov.
Molotsov envisioned Russia being able to manage its own production in about 3 to 4 years' time.
Already 2 years later, on August 23, 2016, Gazprom announced that one of the most efficient mitigation measures is company´s continuing comprehensive effort for technological independence and import substitution.
The effort is meant to increase the share of domestic products in the Group's production activities and to facilitate the development of Russian equivalents for imported equipment.
Foreign equipment currently accounts for about 5% (pipes – less than 0.1%) of the total procurements made by Gazprom Group.
Having imposed strict limits on the procurement of non-Russian equipment, works and services, the Company seeks to diversify its imports by attracting suppliers from the Customs Union, the CIS, Asia-Pacific and BRICS.
Gazprom actively furthers its cooperation with Russian suppliers.
In 2015 Gazprom launched a new collaboration scheme for manufacturers based on long-term contracts for the batch production, supply and maintenance of import-substituting products in the amount equal to guaranteed future purchases.
Such long-term contracts were signed with TMK and United Metallurgical Company (OMK). In addition, a joint venture was created with Vakhrushev Tomsk Electromechanical Plant in order to implement the project for manufacturing highly reliable blow-off and control valves.
The Company creates the conditions for localizing high-technology production in Russia.
To that end, Gazprom, Linde, Power Machines, and Salavatneftemash signed the Agreement of Intent to explore the possibilities for joining efforts in manufacturing natural gas liquefaction and processing equipment.
Gazprom also enlarges the range of its financial instruments and diversifies loan sources, including through enhancing its cooperation with Asian credit institutions.
Gazprom´s Deputy Chairman Aleksandr Medvedev was asked in 2014 if sanctions would hurt the company, he said that economic sanctions have never been effective.
«No successful implementation of sanctions (in history) is known», Medvedev told reporters.
