"For the first time in 25 years, Gazprom announced record losses due to the suspension of supplies to Europe

The Russian gas monopoly Gazprom has reported its first losses in 25 years under international financial reporting standards. In 2023, the corporation lost 629 billion rubles (about $6.8 billion). The reason was a sharp decline in supplies to Europe. This was reported by Radio Liberty, according to UNN.

Details

On May 2, Gazprom published the 2023 financial statements of the group of companies that make up the gas monopoly. Revenues decreased by 27 percent year-on-year, mainly due to the gas business (-43 percent). Oil sales on the domestic and foreign markets exceeded gas sales for the first time.

At the same time, the company has hardly managed to cut costs, and its capital expenditures have increased by almost 10 percent. In addition, the corporation had to pay more taxes in Russia due to their increase.

According to journalists, in 2023, the corporation reduced pipeline exports to Europe by more than 2.5 times, to 24 billion cubic meters, compared to 62 billion in 2022. Supplies are made through Ukraine and Turkey. Sales to China failed to compensate for this.

Recall

In February 2024, Gazprom became the largest supplier of pipeline gas to China for the first time, overtaking the long-time leader Turkmenistan.