Russian Gas Giant Gazprom Posts First Annual Loss in Over 2 Decades
Russian natural gas giant Gazprom reported a net loss of 629 billion rubles ($6.9 billion) for the year 2023, marking its first annual loss in over two decades.
This significant financial downturn coincides with a decline in gas trade with Europe, which previously served as Gazprom's primary sales market.
The company detailed a net loss of 364 billion rubles from sales in 2023, a stark contrast to the profit of 1.9 trillion rubles reported in 2022. Total revenue also witnessed a decrease, falling from 11.7 trillion rubles in 2022 to 8.5 trillion rubles last year.
According to calculations by Reuters, Gazprom's natural gas deliveries to Europe plummeted by 55.6% in 2023, reaching a volume of 28.3 billion cubic metres (bcm). Notably, Gazprom has not released its own export statistics since the beginning of 2023.
Following the announcement of the financial results, Gazprom shares on the Moscow Stock Exchange experienced a decline of approximately 3.3%.
The decline in Russia's gas exports to Europe, previously its most prominent export market, stems from the political repercussions of the ongoing conflict in Ukraine. Gazprom, holding a monopoly on overseas gas pipelines, has become the most tangible victim of Western sanctions imposed in response to the conflict.
Translation by Iurie Tataru
