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OMK announces agreement with Gazprom to use pricing formula for pipeline connectors

On December 26, a contract addendum was signed in Moscow in a solemn ceremony between PAO Gazprom and the United Metallurgical Company to use a formula to price pipeline connectors.  

The document was signed by PAO Gazprom Board Chair Alexey Miller and AO OMK Board Chair Anatoly Sedykh.

A pricing formula will apply to pipeline connectors as of January 1, 2017 and will be used to determine prices for such connectors in any bidding process to select PAO Gazprom vendors. The addendum is designed to expand the competitive environment, to improve the quality of the goods and services being provided as well as to perfect pipeline connector procurement procedures. It extends the effect of the documents signed in 2012 regarding a formula used to price large-diameter pipe.

PAO Gazprom entered into similar agreements with other domestic leaders in the metallurgical sector: PAO Chelpipe and PAO Severstal.

“In 2016, we will have delivered over 10,000 tons of pipeline connectors to Gazprom based on the strictest quality and performance requirements. Using price formulas both for pipes and pipeline connectors is a logical next step on the part of Gazprom. Starting now, we will deliver all pipe products to our strategic partner based on open and transparent pricing which takes care of the interests of both the parties. This is the next step towards better efficiency and a more extensive mutually beneficial relationship”, emphasized OMK President Vladimir Markin.

By OMK.