Gazprom pivots from gas to gadgets amid export slump
Gazprom, the Russian gas giant, plans to produce washing machines and refrigerators at the former Bosch plant near St. Petersburg. This move comes in response to the decline in gas exports to Europe and the absence of a new contract with China. Production is expected to start later this year.
Gazprom, previously known primarily for its gas exports, is shifting the focus of its operations. According to the "Moscow Times," the company plans to manufacture household appliances, including washing machines and refrigerators, at a facility near St. Petersburg, which was previously owned by Bosch.
This decision results from a 60% drop in gas exports to Europe and the absence of a new contract with China.
Production is slated to commence later this year, and the plant near St. Petersburg, handed over to Gazprom by Vladimir Putin, is expected to become a center for household appliance production. Before the invasion of Ukraine, the factory produced over one million devices annually. However, challenges related to the lack of software licenses could delay the start of production.
Vladislav Borodin from Gazprom revealed that the company had already completed a test batch of washing machines in 2024.
The new venture aims to assist Gazprom in light of a record net loss in 2023, amounting to 629 billion rubles ($6.9 billion). The shift to manufacturing household appliances is seen as a response to evolving market conditions and the loss of key gas markets.
