Share of Russian oil and gas equipment should increase from 65% in 2023 to 70% by end of 2024 - Manturov

KRONSHTADT. April 5 (Interfax) - The Ministry of Industry and Trade expects to increase the share of domestic oil and gas equipment in Russia to 70% by the end of 2024 from the 65% achieved at the end of 2023.

"The share of Russian equipment in the oil and gas engineering industry was 65% at the end of 2023. For comparison, at the time of the introduction of the first sanctions restrictions in 2014, it was 43% [...] We expect the trend to increase the share of Russian equipment to continue with an achievement indicator of 70% at the end of the current year," Deputy Prime Minister and Head of the Ministry of Industry and Trade Denis Manturov told reporters following a meeting of the Coordination Council on Import Substitution in the Fuel and Energy Complex.

He said that state support for manufacturers of oil and gas equipment has amounted to about 60 billion rubles since 2015. During this period, the engineering industry has brought more than 160 import-substituting solutions to the market.

As reported, the development strategy of the Russian manufacturing industry provides for achieving a 90% share of Russian equipment in the oil and gas business by 2035.

Manturov also said there had been progress in the formation of a consolidated order for new Russian equipment from the fuel and energy complex. "To date, we have signed six agreements on the development of key areas of the oil and gas industry. For each of the areas there are anchor customers who have formulated their own needs for Russian equipment; the total order value exceeds 1 trillion rubles through 2027. Therefore, we have an understanding of the demand for the products being developed."

One of the areas of import substitution in oil and gas should be reverse engineering, he said. In the near future, the government should approve industry regulations on reverse engineering, which are "specially tuned for fuel and energy projects," the Deputy Prime Minister said.