Gazprom suffered record losses for the year
18 March 2025 07:41
Last year, the Russian company Gazprom recorded a net loss of 1.076 trillion rubles (approximately $12.89 billion) according to Russian accounting standards. This was reported by "Komersant Ukrainian" with reference to Reuters.
It is noted that the company’s financial problems are related, in particular, to anti-Russian sanctions that limit its access to international markets and investments.
According to the agency, the key reason for such significant financial losses was the fall in the market value of shares of its subsidiary Gazprom Neft.
The company’s financial results for 2024, prepared in accordance with international standards, are expected to be published by the end of April.
According to The Moscow Times, Gazprom lost two-thirds of its exports: in 2023, its deliveries to non-CIS countries amounted to only 69 billion cubic meters, the lowest since 1985. And exports to Europe dropped to 28 billion cubic meters, the level of the second half of the 1970s.
In 2024, pumping to Europe increased slightly to 32 bcm per year, according to Reuters, but remained 5.5 times lower than pre-war levels (180 bcm in 2018-19).
The Kremlin’s hopes for China, to which Vladimir Putin offered to increase gas purchases to 100 billion cubic meters per year, proved to be in vain. Xi Jinping never signed a contract for the construction of the Power of Siberia 2 gas pipeline, and the Power of Siberia 1 pipeline, launched in late 2019, compensated the corporation for only a quarter of its previous supplies to the European Union even after reaching full capacity of 38 billion cubic meters per year.
Thus, by the end of 2023, Gazprom suffered its first net loss in a quarter of a century under International Financial Reporting Standards (IFRS), and its amount of RUB 629 billion was a record for the entire period of the company’s existence. In 2024, Gazprom returned to IFRS profit, which amounted to RUB 989 billion in January-September. However, its gas business remained deeply unprofitable.
Key facts
Since February 24, 2022, Western countries have been working to stop importing Russian oil and have not been able to achieve this, presumably because they do not really want to. The EU has spent more on Russian fuel than on aid to Ukraine.
Many countries have not imposed sanctions against Russia. According to the report, some fuel products have reached the West through third countries, including China, India, and Turkey.
Follow us on Telegram: the main news in brief
In the third year of the war, the G7 countries imported €18 billion worth of petroleum products from six refineries in India and Turkey, of which €9 billion was allegedly refined from Russian crude oil. This brought Moscow approximately €4 billion in tax revenues.
Overall, crude oil was Russia’s main source of revenue, bringing in €104 billion. Other sources were gas, coal and liquefied natural gas.
Europe and gas
As of the beginning of 2022, the EU was 40% dependent on Russian gas. In 2021, 65% of the gas purchased by Germany was Russian. In the third quarter of 2023, only 12% of the gas imported by the EU remained Russian.
At the same time, some EU countries, such as Hungary and Slovakia, remain dependent on Russian gas. These countries’ contracts with Gazprom provide for gas supplies through the Ukrainian gas transportation system. Austria has signed a contract for gas supplies until 2040, but it has already declared that it has become independent of Russian fuel.
With both Nord Stream and the Ukrainian GTS out of commission, Russia will be able to supply gas to Europe only through the Turkish Stream.According to the Centre for Research on Energy and Clean Air (CREA), since the beginning of the full-scale Russian invasion, the European Union has bought 205 billion euros worth of energy from Russia.
