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

Driving Down Russia's Spine
June 01, 2016

Driving Down Russia's Spine

The story of the epic Spine of Russia trip, intertwining fascinating subject profiles with digressions into historical and cultural themes relevant to understanding modern Russia. 

The Moscow Eccentric
December 01, 2016

The Moscow Eccentric

Advance reviewers are calling this new translation "a coup" and "a remarkable achievement." This rediscovered gem of a novel by one of Russia's finest writers explores some of the thorniest issues of the early twentieth century.

White Magic
June 01, 2021

White Magic

The thirteen tales in this volume – all written by Russian émigrés, writers who fled their native country in the early twentieth century – contain a fair dose of magic and mysticism, of terror and the supernatural. There are Petersburg revenants, grief-stricken avengers, Lithuanian vampires, flying skeletons, murders and duels, and even a ghostly Edgar Allen Poe.

93 Untranslatable Russian Words
December 01, 2008

93 Untranslatable Russian Words

Every language has concepts, ideas, words and idioms that are nearly impossible to translate into another language. This book looks at nearly 100 such Russian words and offers paths to their understanding and translation by way of examples from literature and everyday life. Difficult to translate words and concepts are introduced with dictionary definitions, then elucidated with citations from literature, speech and prose, helping the student of Russian comprehend the word/concept in context.

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. 

The Latchkey Murders
July 01, 2015

The Latchkey Murders

Senior Lieutenant Pavel Matyushkin is back on the case in this prequel to the popular mystery Murder at the Dacha, in which a serial killer is on the loose in Khrushchev’s Moscow...

Stargorod: A Novel in Many Voices
May 01, 2013

Stargorod: A Novel in Many Voices

Stargorod is a mid-sized provincial city that exists only in Russian metaphorical space. It has its roots in Gogol, and Ilf and Petrov, and is a place far from Moscow, but close to Russian hearts. It is a place of mystery and normality, of provincial innocence and Black Earth wisdom. Strange, inexplicable things happen in Stargorod. So do good things. And bad things. A lot like life everywhere, one might say. Only with a heavy dose of vodka, longing and mystery.

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.

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.

About Us

Russian Life is the 31-year-old publication of an award-winning publishing house that also creates books, 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