Gazprom, a Russian Gas Company, Will Begin Using Blockchain Technology

Fairly soon the Russian state-owned gas company Gazprom may begin employing blockchain to execute and track business contracts

Gazprom CEO Alexey Miller revealed the news during a meeting with the Russian prime minister Dmitry Medvedev on Wednesday, stating that the firm is now ready to get the blockchain process started as it intends to digitize the gas supply process via distributed ledger technology.

Miller also stated that, in conjunction with the state-owned Gazprombank (a Gazprom subsidiary and Russia’s third-biggest bank), they had created a prototype of a technological platform capable of automating the process of concluding, monitoring, and executing all contracts, as well as offering automated arbitrage and calculating gas payments.

He also explained that all parties involved in the process will have access to the blockchain system that will be fully protected from tampering and unauthorized alterations.

The company is planning to start working with major industrial consumers to integrate the blockchain-based automated processes.

Prime minister Mr. Medvedev had a positive response, stating that the blockchain technology holds a lot of promise for the future of Russia’s economy, in addition to the operations of companies such as Gazprom.

Gazprom is not new to the blockchain game, as they have been testing out the technology for some time. In the summer of 2018, its aviation refuelling subsidiary Gazprom Neft-Aero began using blockchain and smart contract technologies to automate planning and accounting processes for their fuel supplies.

GazpromNeft, another subsidiary and the third biggest oil company in Russia, started testing blockchain as a way to improve logistics and procurement management in February 2018. Two months after that, Gazprombank stated that they were thinking about allowing their wealthy clients to trade cryptocurrencies. However, there were no concrete details at the time.

Jessica Zeitz