Gazprom deep in the red: record loss due to slump in gas sales in Europe
Gazprom reports a loss of 629 billion roubles due to the collapse of gas sales in Europe
2' min read
2' min read
Gazprom's sales slump: in 2023, the Russian energy giant posted a loss of 629 billion roubles (or $6.9 billion), the worst in decades. The Russian invasion of Ukraine led to the collapse of sales in Europe, its main source of income.
Sales halved
.Gazprom's revenues thus fell by almost 30% year-on-year to 8.5 trillion roubles, with gas sales dropping from 6.5 trillion roubles in 2022 to 3.1 trillion roubles. Analysts point out that Gazprom has failed to adapt to the loss of the European market, with revenues from gas sales outside Russia falling from 7.3 trillion roubles in 2022 to 2.9 trillion roubles last year. In contrast, profits from oil, gas condensate and petroleum products rose to 4.1 trillion roubles (+4.3%), too little to offset losses in the core business.
Quotas derisory in Europe
.European countries, meanwhile, found alternative sources of gas: Russia's share of gas imports to Europe fell from 40% in 2021, the last full year before the invasion, to 8% in 2023, according to the EU.
Dramatic decline
.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 resolve disputes with neighbouring countries such as Ukraine and Moldova.
The numbers also expose the inconsistency of Russian government propaganda, which has often snubbed Europe by claiming that Moscow was able to quickly find alternative sales channels outside the EU.
