2024-05-03 12:48:16
Russian gas giant Gazprom posted record losses last year. This is also related to Western sanctions.
Russian gas giant Gazprom posted record losses last year. The state-owned company reported a net loss of 629 billion rubles (around 6.4 billion euros) for 2023 on Thursday. According to its own information, Gazprom recorded a profit of 1.23 trillion rubles (around 12.5 billion euros) in 2022.
The Russian state-owned company has lost important sales markets due to the sanctions imposed by Western states as a result of the Russian offensive in Ukraine. In addition, the company’s Nord Stream pipelines – long the main transport route for gas to Europe – were damaged by suspected acts of sabotage in September 2022. For years, Europe was Gazprom’s most important export market.
Gazprom is looking for new sales markets
Since the start of the Ukraine offensive in February 2022 and the subsequent Western sanctions, Gazprom has been seeking new sales markets. However, in order to meet the increased demand in Asian countries, the company needs investments in its infrastructure. In addition, the group, which has the largest natural gas reserves in the world, is struggling with the financial burden of expanding its domestic distribution network.
Moscow particularly wants to increase gas exports to China. Negotiations on the planned expansion of the “Power of Siberia 2” pipeline, which is intended to bring gas from Siberia through the steppes of Mongolia to northern China, had recently stalled