In order to save Gazprom, Russia is raising gas prices for households at a record high
1 July 2024 16:47
The Russian authorities have decided to increase gas tariffs by 11.2% from 1 July, reports "Komersant Ukrainian" citing the Russian government’s announcement.
In this way, Russia is trying to fill the budget of Gazprom, which last year suffered the largest losses in its history, estimated at almost $6.7 billion.
Russia has also increased the total payment for utility services by 9.8% and the tariffs of network companies for all consumers by 9.1%.
This means that in two years, gas prices for Russians will rise by 20%, and by 34% since the beginning of the great war. Such a significant increase in gas prices has not been seen for many years.
The last such sharp increase in gas tariffs – by 15% in a year – took place in 2013. Now, in 2024, the government is once again increasing the burden on consumers due to Gazprom’s difficult financial situation.
As reported 
, the new EU sanctions for the first time affected Russian gas, but did not hit it. However, a German company sued Gazprom for €13bn.
“Gazprom
“Gazprom is Russia’s largest state-owned energy company, a monopolist in the production and export of natural gas. It was founded in 1989, when the gas industry of the former USSR was separated from the Ministry of Gas Industry. The company is controlled by the Russian government, which owns more than 50% of the shares.
The share of gas from Gazprom in the global market is constantly falling. In 2011, the company produced 17% of the world’s gas, and in 2017, it produced about 12% of the world’s gas. Prior to Russia’s full-scale invasion of Ukraine, Gazprom provided about a third of the European Union’s gas imports, supplying it under long-term contracts.
However, since the invasion, Russian gas supplies to Europe have been significantly reduced, but still continue.
In 2023, Gazprom became unprofitable for the first time in a quarter of a century – the company ended the year with a loss of about $7 billion. The last time Gazprom was unprofitable was in 1999.
