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June 9, 2005

Gazprom’s delegation visits machine building companies of Tatarstan, Perm & Chelyabinsk regions

Over 6 to 8 June, led by Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee, Gazprom’s delegation undertook a business trip to Russian regions and paid a visit to machine building companies manufacturing equipment for Gazprom’s needs.

The delegation visited Kazancompressormash and Kazan Engine Building Production Association engaged in manufacture of gas-pumping & gas turbine units; Perm Motor Plant, Aviadvigatel, Iskra-Turbogaz and Iskra (city of Perm) producing gas-pumping & gas turbine units with enhanced specifications and block-type power plants; Chelyabinsk Pipe Plant supplying Gazprom with 530-1,220mm pipes, spools, mounting components and pipeline connecting pieces.

While meeting heads of the aforementioned companies, Alexander Ananenkov pointed out once again that joint activities of Gazprom and Russian machine builders were mainly focused on the manufacture of high-quality domestic output that could adequately compete with foreign counterparts. Simultaneously, special emphasis should be placed on output innovations.

“We’re giving wide support to Russian machine building companies and are very interested in the progress of our joint activities. That is why, our suppliers are facing the challenge of shortly fulfilling Gazprom’s technical requirements. First and foremost, we’re talking about higher reliability and efficiency of gas-pumping units,” – stressed A. Ananenkov.

Gazprom also puts forward other requirements to machine builders, including:

· manufacturing block-type equipment;

· ensuring maximum readiness of factory-tested equipment;

· cutting product value and reducing shipment deadlines;

· producing large diameter (up to 22 MPA) pipes with outer coating and inner lining;

· producing 12-22 MPA pipeline connecting joints with outer coating and inner lining;

· producing injectors and 10-12 MPA shut-off & control valves.

In the course of the trip, Alexander Ananenkov held working meetings with Rustam Minnekhanov, Prime Minister of the Republic of Tatarstan, Oleg Chirkunov, Acting Governor of the Perm Region and Vladimir Dyatlov, First Vice Governor of the Chelyabinsk Region.

The parties addressed potential cooperation between regional machine building companies and Gazprom, touched upon matters relative to gas supplies to Tatarstan, Perm & Chelyabinsk Regions and scrutinized the progress in cooperation agreements between regions and Gazprom.


Gazprom is first of all oriented towards home-made output procurement and has invested some RUR 10 bln in the domestic output development & manufacture over the past 10 years only. Furthermore, the Company is placing the strictest demands on the quality of both the 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 bidding being conducted. A 2-phase bidding is summoned if a tenderee is unable to make up detailed technical specifications and has to make an anticipated study of potential suppliers’ propositions. Sole-source awarding of supply contracts is clearly specified in the Provision, as well.

Using openly-held tenders, Gazprom will acquire pipe products, construction materials, metals & hard components, cables, instrumentation, petrochemical materials, machine building and other output.





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