Gazprom Speaks of Import Substitution, Eyes International Capital Markets

Russia’s Gazprom said it would continue in its efforts to minimise dependence on the foreign equipment supply, moving forward with its import substitution policy, while eyeing opportunities related to its Sakhalin-2 LNG plant and considering the possibility of returning to international capital markets next week.

‘The meeting pointed out that close interaction with Gazprom enabled Russian leading machine building and pipe companies to start the mass production of cutting-edge and unique pipes for gas trunklines, high-tech inspection, transmission and other types of home-produced equipment’ reads a note released on Monday, referring to a meeting of the Gazprom Board. 

At the same time, Gazprom and Russia’s Ministry of Industry and Trade signed the Import Substitution Program for industrial products needed by Gazprom, its subsidiaries and affiliates. 

This technological independence does not translate into a financial independence as the state-run company could go back to international capital markets.

Bloomberg reported on Tuesday that Gazprom would like to kick-start Russian Eurobond sales, looking to raise 1 billion euros in bonds with a 4-5 maturity. According to the news agency, Banca IMI SpA, JPMorgan Chase & Co. and UniCredit SpA will organise meetings in France, Germany and the UK with potential investors.  

Moreover, Gazprom’s Deputy CEO Alexander Medvedev told Reuters that it is considering a fourth production train for its Sakhalin-2 LNG plant.