Gazprom Board Adopts Cost Reduction Programme for 2017

The Gazprom Board of Directors approved on October 18 the revised investment program, budget (financial plan) and cost optimization (reduction) programme for 2017, the Russian gas monopoly said. The key figures of the investment programme did not change compared to the version approved by the Gazprom Management Committee in September this year, Gazprom said.

According to the Russian company, pursuant to the revised investment programme for 2017, the overall amount of Gazprom’s investments will stand at 1,128.576 billion rubles, which is 217.341 billion rubles more than was envisaged in the investment programme approved in December 2016. Of that amount, 738.538 billion rubles (up by 112.518 billion rubles) is intended for capital construction, 11.310 billion rubles (up by 11.185 billion rubles) for the acquisition of non-current assets, and 378.728 billion rubles (up by 93.637 billion rubles) for long-term financial investments.

The approved financial plan will provide for a full coverage of Gazprom’s liabilities without a deficit, the company said. The revised cost optimization (reduction) programme for 2017 includes cost optimization (reduction) measures with an expected cumulative effect of 15.4 billion rubles.