Supplier Relations

Material topics 2

The Gazprom Group’s economic performance

Material topics 4

The Gazprom Group’s legal compliance

Material topics 11

The Gazprom Group’s procurement system and procurement localization

The Gazprom Group’s procurement system relies on the following principles

Catering to all Gazprom Group’s needs for goods, works, and services in full and in due time, and identifying a supplier (contractor) capable of meeting the customer’s needs in a timely and quality manner, and in line with the required indicators of price, quality, and reliability

Safe operation of hazardous UGSS production facilities

Information transparency of procurement

Equality, fairness, zero discrimination or unreasonable restrictions on competition among bidders

Targeted and economically efficient spending

Stimulation of competitive environment

Gazprom’s procurement activities mainly seek to cater, in a timely manner, to all the Group’s needs for goods, works, and services taking into account their price, quality, and reliability.

14,200

contracts worth RUB 697.4 billion were signed in 2024 as a result of bidding and marketing research

> 99.7%

share of electronic procurement in the Gazprom Group’s bidding and marketing research processes

Gazprom Group Indicators10

RUB 29.7 billion

savings (4.1% efficiency) from bidding and marketing researchDifference between the sum of initial (maximum) prices and those awarded after the bidding procedure.

Gazprom Group Indicators14

Procurement Management

For the purposes of the Gazprom Group’s unified procurement policy in accordance with the principles set forth in the Regulation on Procurement of Goods, Works, and Services by PJSC Gazprom and the Gazprom Group Entities1 , PJSC Gazprom established the Central Procurement Office of the Gazprom Group.

The Group’s Central Procurement Office is responsible for:

  • planning and conducting procurements at the Gazprom Group;
  • providing methodological guidance to the Gazprom Group and exercising control over its procurement activities;
  • maintaining the Gazprom Group’s Register of Potential Bidders following their pre-qualification.
  • performing the coordinator role within the INTERGAZSERT voluntary certification system.

The Gazprom Group has put in place the Automated Electronic Procurement System (AEPS)AEPS: https://zakupki.gazprom.ru/., covering the entire procurement cycle, from needs planning to signing and executing contracts.

As regards electronic procurement, the Group employs the Electronic Trading Platform of Gazprombank (ETP GPB)ETP GPB’s section of the Gazprom Group’s procurements at: https://etpgpb.ru/pao_gazprom/). integrated with the Unified Information System (UIS) for public and municipal procurement of goods, works, and services (www.zakupki.gov.ru), and with the AEPS.

The Gazprom Group selects suppliers using the procedures stipulated by the Regulation on Procurement, which sets out uniform procurement rules and procedure for goods, works, services, including procurement methods and their terms.

The documentation used in the procurement processAccording to the Regulation on Procurement at: https://zakupki.gazprom.ru/reestr_ mtr/index.html. may require that the bidders should offer products included in the Unified Register of Material and Technical Resources Admitted for Use at the Facilities of PJSC Gazprom and Compliant with the Requirements of PJSC GazpromPJSC Gazprom’s Unified Register of Material and Technical Resources at: https://www.gazprom.ru/tenders/ requirements-for-goods/. and that a relevant provision is stated in the draft agreement. The Unified Register of Material and Technical Resources contains more than 1,880 entries from 498 industrial enterprises, with over 220 new entries made in 2024 from 21 manufacturers newly included in the Unified Register.

PJSC Gazprom prequalifies its suppliers (contractors, service providers) to be added to the Gazprom Group’s Register of Potential Bidders if their goods, works, and services meet corporate requirements applicable to processes, quality, and safety. Bidders that have submitted applications for participation in the pre-qualification are evaluated as regards their legal capacity, solvency, business reputation, availability of qualified personnel, materials and equipment, compliance with standards and legal requirements, including those related to occupational health, environmental, industrial and fire safety.

In 2024, PJSC Gazprom announced 21 pre-qualification procedures, covering over 870 types of works and services. The Company received 771 applications and added 285 new participants to the Register, capable of performing specific types of works, providing specific types of services, and supplying specific goods in line with established requirements for production processes, quality, and safety of goods, works, and services.

As of December 31, 2024, the Gazprom Group’s Register of Potential Bidders included more than 1,140 pre-qualified participants, including 784 SMEs.

In 2024, the Gazprom Group established and documented an ecosystem for interactions with potential counterparties:

  • launched the Counterparty Portal, a digital platform for counterparty participation in the Gazprom Group’s business processes, which enables any market player to introduce itself and sign up for pre-qualification and certification on PJSC Gazprom’s AEPS, and to submit proposals for import substitution of goods, works, and services or an application for product certification;

For more details on the Code of Conduct for Suppliers (Contractors, Service Providers) of PJSC Gazprom and the Gazprom Group Entities, see the Key Events and Corporate Ethics and Anti-Corruption sections.

  • documented a mechanism for evaluating and monitoring the performance of counterparties in fulfilling their contractual obligations to the Gazprom GroupApproved by decree of PJSC Gazprom No. 148 dated May 27, 2024., as well as for rating (ranking) counterparties.
  • developed regulations, including the Procedure for Interaction with Potential Suppliers (Contractors, Service Providers) of PJSC Gazprom and the Gazprom Group Entities, as well as the Code of Conduct for Suppliers (Contractors, Service Providers) of PJSC Gazprom and the Gazprom Group Entities;

For more details on the Procedure for Interaction with Potential Suppliers (Contractors, Service Providers) of PJSC Gazprom and the Gazprom Group Entities, see the Key Events and Sustainability Management System sections.

To mitigate the risks of nonperformance or improper performance of obligations by counterparties and their subcontractors, PJSC Gazprom monitors contract execution and assesses its quality. In 2024, the Company created a database covering over 335,000 contracts and 57,000 counterparties. These efforts will continue in 2025.

In 2024, the Gazprom Group entities signed contracts with over 34,700 suppliers of goods, works, and services, 34,400 (99%) of which were independent providersPursuant to clause 1.2.5 of the Regulation on Procurement..

Supply Chain

Gazprom Group Procurements
Indicator 2022 2023 2024 Change 2024/2023, %
Total value of bidding and marketing research, RUB billion 919.1 763.7 697.4 −8.7
Total number of contracts signed after bidding and marketing research, thousand 15.4 14.9 14.2 −0.5
Number of counterparty audits to confirm their reliability, solvency, and financial health as part of the Gazprom Group’s procurement activities, thousand
Savings due to bidding for contracts and marketing research, RUB billionSavings are defined as the difference between the initial (maximum) prices and those awarded following the bidding procedure, taking into account the notional costs of organizing and conducting the bidding.
Gazprom Group Indicator 14

PJSC Gazprom’s Board of Directors reviews procurement reports on a quarterly basis.

For more details on the Gazprom Group’s supplier relations in process safety, see the Process Safety section.

For more details on the Gazprom Group’s supplier relations in environmental protection, see the Environmental Protection. Improving Energy Efficiency and Energy Saving section.

Risk management measures in procurement

The Gazprom Group manages procurement risks through mechanisms for preventing and avoiding such violations, including those embedded in its by-laws. The Group uses competitive procedures for contractor selection, conducts market research and screens initial (maximum) prices of goods, works, and services (contract prices).

Digital Transformation of Procurement

In 2024, the Gazprom Group continued to improve its digital procurement processes and streamline counterparty interactions.

For more details on the Gazprom Group’s procurement regulations, see the official website of PJSC Gazprom.

Development of AEPS 2.0

During the reporting year, PJSC Gazprom continued to develop its import-independent AEPS. Four AEPS modules were launched, and cost calculations for four procurement areas were automated, significantly accelerating operations. In line with the requirements of resolution No. 60Resolution No. 60 of the Government of the Russian Federation On Measures for Information Support of the Contract System in Public and Municipal Procurement of Goods, Works, and Services, for Document Management, for Amending Certain Acts of the Government of the Russian Federation, and On Invalidating Certain Acts and Provisions of Acts of the Government of the Russian Federation dated January 27, 2022. of the Government of the Russian Federation dated January 27, 2022, AEPS was integrated with the Independent Registrar Government Information System.

Transition to machinereadable powers of attorney

In accordance with Federal Law No. 476-FZFederal Law No. 476-FZ On Amending the Federal Law On Electronic Signature and Article 1 of the Federal Law On the Protection of Legal Entities’ and Individual Entrepreneurs’ Rights During State Control (Supervision) and Municipal Control dated December 27, 2019., Gazprom transitioned to machine-readable powers of attorney, an electronic equivalent of conventional powers of attorney for signing electronic documents on behalf of the Company.

Digital systems for procurement staff

In 2024, the Counterparty Scanner was launched, a unified digital database for searching and analyzing suppliers and contractors that provides up-todate information about them as a digital passport. Additionally, the Unified Methodological Procurement Portal was launched. This interactive platform fosters the development of competencies among procurement staff and provides methodological and advisory support and facilitates procurementrelated communication within the Gazprom Group.

Transition to digital product certification

In the reporting year, the first stage of the transition to digital voluntary certification for counterparties was completed, with the INTERGAZSERT Digital Product Certification module launched. It ensures interaction among all system participants within a unified information environment and a transparent certification process. The new module significantly reduces paperwork and accelerates certification procedures.

For more details on the Gazprom Group’s supplier relations, see the Stakeholder Engagement Practices appendix

Supporting Small and Medium-Sized Businesses

In line with the Russian Government’s directives, the Group implements a set of measures to expand the SME access to procurement at PJSC Gazprom and its subsidiaries and entities.

Procurement procedures in which SMEs can participate have been simplified to the maximum extent possible in order to involve them in cooperation:

  • procurement is electronic;
  • minimum number of documents is required;
  • no financial security is required.

PJSC Gazprom was ranked among the top three largest stateowned companies in terms of SME loyalty, a rating presented by SME Corporation at the St. Petersburg International Economic Forum in 2024.

Gazprom Group Indicators15MED9

The total value of contracts signed in 2024 by the Gazprom Group entities with companies in the Unified Register of SMEs1 exceeded RUB 431.3 billion (more than 55,800 contracts), including 8,800 contracts for RUB 246.3 billion based on bidding and marketing research.

SMEs accounted for more than a half (62.4%, or 21,700) of the Gazprom Group’s counterparties under contracts for goods, works, and services signed in 2024.

For small-scale procurements, the Trading Portal electronic service is usedhttps://etpgpb.ru/en/. This is a section of Gazprombank’s Electronic Trading Platform (ETP GPB), designed for the quick small-scale procurement of goods, works, and services. Over 27,200 potential counterparties are registered on the Trading Portal (including more than 23,000 SMEs), offering over 1.5 million items of goods, works, and services.

To execute contracts concluded following price-list procurement, the Gazprom Markethttps://gazprom.market/, https://etp.gpb.ru/ platform is used. Today, 471 organizations are registered on Gazprom Market, including 123 SMEs, whose bids were recognized as the best following price-list procurement. In 2024, 141 new organizations were registered on Gazprom Market.

62.4%%

share of SME suppliers

> RUB 431.3 billion

worth of contracts with SME suppliers

Gazprom Group Procurement from SMEs
Gazprom Group Indicators15, 9
Indicator 2022 2023 2024 Change 2024/2023
Share of SME suppliers in the total number of the Gazprom Group’s counterparties, % 60.3 61.0 62.4 +1.4 п. п.
Value of contracts signed with SMEs, RUB billion 468.2 391.8 431.3 +10.1 %
Share of goods, works, and services procured from SMEs in the total procurement of goods, works, and services from Russian organizations, %
MED8