Russian Gas Giant Gazprom to Use Blockchain to Execute Business Contracts

Gazprom, a state-owned gas giant in Russia, could soon start utilizing blockchain to monitor and execute business contracts.

Alexey Miller, CEO of Gazprom, revealed the news at a meeting with Russian prime minister Dmitry Medvedev on April 3, stating that the company is now “ready to start implementing the process” of utilizing distributed ledger technology in digitizing the gas supply process in its operations.

Miller elucidated that, together with the state-owned Gazprombank (a Gazprom subsidiary and Russia’s third-largest bank), “we have developed a prototype of a technological platform to automate the process of concluding, monitoring and executing contracts. This system also provides for automated arbitrage and calculation of payments for gas.”

All participants included in the process can access the system and is “fully protected” from unauthorized alterations, he added.

Initially, Gazprom will begin working with “major” industrial consumers to enable the blockchain-based automated process, according to Miller.

The prime minister was positive in his comment, stating that the nascent technology has a “promising” future in the Russian economy, along with the activities of companies like Gazprom.

Gazprom had been testing blockchain technology for a while now. For instance, Gazpromneft-Aero, its aviation refueling subsidiary, utilized blockchain and smart contract technologies to automate accounting and planning processes in fuel supplies last summer.

Gazprom Neft, another subsidiary and the third largest oil producer in Russia, started trialing blockchain to enhance procurement management and logistics in February last year. After two months, Gazprombank stated that it was planning to enable its wealthy clients to trade cryptocurrencies, though no solid details were disclosed at the time.