$570M Disappeared in Gazprom Construction Projects

Nineteen billion rubles ($570 million) spent by Gazprom on infrastructure in the Far East has been squandered, because the builders used different designs and cheaper materials than specified in the plans upon which contracts were signed, Vedomosti reported.

Gazprom has built more than 70 railway bridges at a cost of more than 130 billion rubles to aid the exploitation of gas fields in the Yamal-Nenets autonomous district.

According to a Vedomosti investigation, the bridges that were built are worth an estimated 19 billion rubles — or 15 percent — less, as construction firms in up to 26 cases deviated from the agreed designs.

Many of the companies responsible for the money-saving shortcuts have links with top managers at Gazprom, Vedomosti said.

The gas monopoly has declined to comment.

Read more