Gazprom, the Kremlin-owned gas company, announced a net loss of $6.9 billion for 2023, marking its first annual loss in more than 20 years. The steep decline highlights the company’s dramatic fall, exacerbated by dwindling gas trade with Europe, which was previously its main market.
Analysts, who had already expected a net income drop, were taken aback by the results. The loss is the first since the late 1990s, around the time when Alexei Miller, an ally of Russian President Vladimir Putin, assumed control of the company in 2001. This downturn follows a prosperous 2022, during which Gazprom reported a net profit of over $10 bln.
The company’s 2023 financial woes have been attributed to a sharp decline in European gas exports due to political fallout from the conflict in Ukraine and Western sanctions. The company’s shares in Moscow fell by 3.3% following the announcement.
Gazprom’s natural gas supplies to Europe have dropped by over 50% in 2023.
The results highlight the dramatic decline of Gazprom, which since the collapse of the Soviet Union has been one of Russia’s most powerful companies, often used as leverage to solve disputes with its neighbors, such as Ukraine and Moldova.
The company’s 2023 financial woes have been attributed to a sharp decline in European gas exports due to political fallout from the conflict in Ukraine and Western sanctions. The company’s shares in Moscow fell by 3.3% following the announcement.
Gazprom’s natural gas supplies to Europe have dropped by over 50% in 2023.
The results highlight the dramatic decline of Gazprom, which since the collapse of the Soviet Union has been one of Russia’s most powerful companies, often used as leverage to solve disputes with its neighbors, such as Ukraine and Moldova.
According to analysts, it was Gazprom’s first annual loss since the late 1990s/early 2000s, when Miller took over the company in 2001.
According to Reuters’ calculations, Gazprom’s natural gas supplies to Europe plummeted 55.6% to 28.3 billion cubic meters (bcm) in 2023.
The energy giant has not published its own export statistics since the start of 2023.
According to Reuters’ calculations, Gazprom’s natural gas supplies to Europe plummeted 55.6% to 28.3 billion cubic meters (bcm) in 2023.
The energy giant has not published its own export statistics since the start of 2023.
Source: TVP World, Reuters
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