May 08, 2024

A Dismal Year for Gazprom


A Dismal Year for Gazprom
Gazprom and White House. James Offer, Flickr.

Gazprom, the Russian majority state-owned multinational energy corporation, concluded 2023 with its worst financial performance in history. The company's losses amounted to R629 billion (nearly $6.9 billion), with revenue plummeting by 27%.

The last time Gazprom faced a loss was during the rocky years of 1998–1999. During that period, global oil prices were at historic lows, and a significant portion of Gazprom’s contracts were linked to oil prices. Concurrently, domestic market non-payments were rampant. Even during the pandemic-induced challenges of 2020, Gazprom did not suffer losses as severe as those witnessed in 2023.

The primary catalyst for the losses stems from dwindling export revenues from gas sales to Europe, a repercussion of Russia's relentless War on Ukraine. Independent energy expert Kirill Rodionov reported a staggering 56% decline in gas supplies to the European Union, plummeting from 66.6 billion cubic meters in 2022 to 29.3 billion cubic meters in 2023. This decline failed to be offset by the increase in Russian gas exports to China, from 16 billion cubic meters to 22.5 billion.

Another contributing factor for Gazprom's financial woes is the heightened financial burden imposed by an additional increase in the mineral extraction tax.

Remarkably, the record losses in 2023 materialized despite optimistic assurances from both government officials and management. In October 2023, Russian President Vladimir Putin expressed confidence amidst the turmoil surrounding Gazprom: “Now Gazprom delivers less and has less income, but it feels confident.”

In December, Famil Sadigov, Deputy Chairman of the Board of Gazprom, projected a bright outlook for 2023, citing anticipated robust financial results driven by “other activities” and escalating gas supplies to China.

At the same time, Russia and China have yet to reach an agreement on the construction of the expansive gas pipeline Sila Sibiri 2 ("Power of Siberia"), which could position Russia as China's principal gas supplier. However, even if consensus is reached regarding the pipeline's construction, it is likely not sufficient to mitigate Gazprom's loss in the European market.

You Might Also Like

An Air Self Defense
  • March 27, 2024

An Air Self Defense

Some Russian companies are buying their own air defense systems.
Like this post? Get a weekly email digest + member-only deals

Some of our Books

Davai! The Russians and Their Vodka
November 01, 2012

Davai! The Russians and Their Vodka

In this comprehensive, quixotic and addictive book, Edwin Trommelen explores all facets of the Russian obsession with vodka. Peering chiefly through the lenses of history and literature, Trommelen offers up an appropriately complex, rich and bittersweet portrait, based on great respect for Russian culture.

The Samovar Murders
November 01, 2019

The Samovar Murders

The murder of a poet is always more than a murder. When a famous writer is brutally stabbed on the campus of Moscow’s Lumumba University, the son of a recently deposed African president confesses, and the case assumes political implications that no one wants any part of.

Fish
February 01, 2010

Fish

This mesmerizing novel from one of Russia’s most important modern authors traces the life journey of a selfless Russian everywoman. In the wake of the Soviet breakup, inexorable forces drag Vera across the breadth of the Russian empire. Facing a relentless onslaught of human and social trials, she swims against the current of life, countering adversity and pain with compassion and hope, in many ways personifying Mother Russia’s torment and resilience amid the Soviet disintegration.

Bears in the Caviar
May 01, 2015

Bears in the Caviar

Bears in the Caviar is a hilarious and insightful memoir by a diplomat who was “present at the creation” of US-Soviet relations. Charles Thayer headed off to Russia in 1933, calculating that if he could just learn Russian and be on the spot when the US and USSR established relations, he could make himself indispensable and start a career in the foreign service. Remarkably, he pulled it of.

Murder and the Muse
December 12, 2016

Murder and the Muse

KGB Chief Andropov has tapped Matyushkin to solve a brazen jewel heist from Picasso’s wife at the posh Metropole Hotel. But when the case bleeds over into murder, machinations, and international intrigue, not everyone is eager to see where the clues might lead.

Moscow and Muscovites
November 26, 2013

Moscow and Muscovites

Vladimir Gilyarovsky's classic portrait of the Russian capital is one of Russians’ most beloved books. Yet it has never before been translated into English. Until now! It is a spectactular verbal pastiche: conversation, from gutter gibberish to the drawing room; oratory, from illiterates to aristocrats; prose, from boilerplate to Tolstoy; poetry, from earthy humor to Pushkin. 

Faith & Humor
December 01, 2011

Faith & Humor

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.

A Taste of Chekhov
December 24, 2022

A Taste of Chekhov

This compact volume is an introduction to the works of Chekhov the master storyteller, via nine stories spanning the last twenty years of his life.

Life Stories
September 01, 2009

Life Stories

The Life Stories collection is a nice introduction to contemporary Russian fiction: many of the 19 authors featured here have won major Russian literary prizes and/or become bestsellers. These are life-affirming stories of love, family, hope, rebirth, mystery and imagination, masterfully translated by some of the best Russian-English translators working today. The selections reassert the power of Russian literature to affect readers of all cultures in profound and lasting ways. Best of all, 100% of the profits from the sale of this book are going to benefit Russian hospice—not-for-profit care for fellow human beings who are nearing the end of their own life stories.

The Pet Hawk of the House of Abbas
October 01, 2013

The Pet Hawk of the House of Abbas

This exciting new trilogy by a Russian author – who has been compared to Orhan Pamuk and Umberto Eco – vividly recreates a lost world, yet its passions and characters are entirely relevant to the present day. Full of mystery, memorable characters, and non-stop adventure, The Pet Hawk of the House of Abbas is a must read for lovers of historical fiction and international thrillers.

 

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955