Gazprom shifts gears: From gas exports to home appliances
Gazprom, the Russian gas giant, is planning to produce washing machines and refrigerators at the former Bosch plant near St. Petersburg. This move comes as a response to the decline in gas exports to Europe and the absence of a new contract with China. Production is expected to commence later this year.
Gazprom, previously recognised 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 the facility near St. Petersburg, which was formerly owned by Bosch.
This decision has been prompted by a 60% decrease in gas exports to Europe and the absence of a new contract with China.
Production is set to begin later this year, and the plant near St. Petersburg, which was handed over to Gazprom by Vladimir Putin, is intended to become a centre 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 licences might delay the commencement 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 the wake of a record net loss in 2023, amounting to 629 billion roubles (€6.1 billion). Manufacturing household appliances is intended to be a response to shifting market conditions and the loss of key gas markets.
