The operator of the aviation fuel business Gazpromneft-Aero of Gazprom Neft is actively promoting the introduction of digital smart contracts based on blockchain technology. Dmitry Korpachev, head of the Gazpromneft-Aero’s sales department abroad, told reporters that the company expects to receive a working version of the technology by the end of 2019 which will be offered to customers.
Gazpromneft-Aero is a subsidiary of Gazprom Neft. Since January 1, 2008, the company has been operating in aircraft refueling and sales of aviation fuel “into the wing”. Gazpromneft-Aero started the implementation of the technology in 2018 in cooperation with S7 Airlines. Partners developed and implemented joint smart contracts based on blockchain technology for the first time in Russia
When initiating a smart contract through the AFSC system, S7 Airlines transmits all the information about the planned refueling of the future flight to Gazpromneft-Aero. It also fixes the preliminary fuel volume and its price. On the day of refueling, the aircraft commander requests a specified amount of fuel from the operator through a system . In result of which, the online application is sent to the airline’s bank to reserve the required amount in the account. Instant confirmation from the bank gives a start. After the service is completed, the funds are written off and information about the closure of the application for refueling, with all reporting documents, is transmitted to the commercial services of the fuel supplier and the air carrier.
Commenting on the project implementation, Gazprom Neft-Aero CEO Vladimir Yegorov said: “This is the first experience of using the blockchain in the Russian and international jet fuel markets. The technology allows airlines to instantly pay for fuel directly when refueling aircraft; without prepayment, bank guarantees, and financial risks for participants in the transaction. We plan that approximately in the next three to four years, the company will be able to extend the technology of paying for gas stations based on smart contracts to more than 25% of our volume of jet fuel. ”