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

Dostoyevsky Bilingual

Dostoyevsky Bilingual

Bilingual series of short, lesser known, but highly significant works that show the traditional view of Dostoyevsky as a dour, intense, philosophical writer to be unnecessarily one-sided. 
A Taste of Chekhov

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.
At the Circus (bilingual)

At the Circus (bilingual)

This wonderful novella by Alexander Kuprin tells the story of the wrestler Arbuzov and his battle against a renowned American wrestler. Rich in detail and characterization, At the Circus brims with excitement and life. You can smell the sawdust in the big top, see the vivid and colorful characters, sense the tension build as Arbuzov readies to face off against the American.
The Moscow Eccentric

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.
The Frogs Who Begged for a Tsar (bilingual)

The Frogs Who Begged for a Tsar (bilingual)

The fables of Ivan Krylov are rich fonts of Russian cultural wisdom and experience – reading and understanding them is vital to grasping the Russian worldview. This new edition of 62 of Krylov’s tales presents them side-by-side in English and Russian. The wonderfully lyrical translations by Lydia Razran Stone are accompanied by original, whimsical color illustrations by Katya Korobkina.
Driving Down Russia's Spine

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. 
Survival Russian

Survival Russian

Survival Russian is an intensely practical guide to conversational, colloquial and culture-rich Russian. It uses humor, current events and thematically-driven essays to deepen readers’ understanding of Russian language and culture. This enlarged Second Edition of Survival Russian includes over 90 essays and illuminates over 2000 invaluable Russian phrases and words.
Woe From Wit (bilingual)

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.
Chekhov Bilingual

Chekhov Bilingual

Some of Chekhov's most beloved stories, with English and accented Russian on facing pages throughout. 
Tolstoy Bilingual

Tolstoy Bilingual

This compact, yet surprisingly broad look at the life and work of Tolstoy spans from one of his earliest stories to one of his last, looking at works that made him famous and others that made him notorious. 
93 Untranslatable Russian Words

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.

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