Copyright © 2024 Euromaidanpress.com

The work of Euromaidan Press is supported by the International Renaissance Foundation

When referencing our materials, please include an active hyperlink to the Euromaidan Press material and a maximum 500-character extract of the story. To reprint anything longer, written permission must be acquired from [email protected].

Privacy and Cookie Policies.

UK Intel: Gazprom sees biggest annual loss in 25 years due to war in Ukraine

Gazprom’s failure to replace its lost European gas market will constrain profits until at least 2030, British intelligence assesses
GAZPROM Germania GmbH is GAZPROM’s subsidiary that in addition to its main activities of expanding Gazprom’s operations in foreign markets, is an active sponsor of activities that promote Gazprom’s and Russian image in Europe. Photo: GAZPROM
UK Intel: Gazprom sees biggest annual loss in 25 years due to war in Ukraine

Russian state-owned energy giant Gazprom suffered its biggest annual loss in 25 years in 2023, with revenues falling by around 30% and a net loss of approximately 629 billion roubles (USD $6.9 billion), according to an assessment by British intelligence.

The Gazprom losses are due to measures taken by the European Union to limit consumption of Russian gas and oil following Russia’s invasion of Ukraine. The bloc imposed import bans and tariffs on Russian oil and coal, significantly reduced its dependency on Russian gas, implemented price caps, and accelerated investments in renewable energy to diversify and secure its energy supplies.

The UK intelligence report states that Russia’s invasion of Ukraine in 2022 and the subsequent deterioration of relations with the West “has severely constrained Gazprom’s operations.” It notes that “Gazprom’s failure to fully re-orientate its exports away from its dependence on European markets will likely continue to restrict its profits until at least 2030.”

While Gazprom has diverted some trade to alternative markets like China, India, and Türkiye, the report estimates these accounted for only 5-10% of lost European sales in 2023. Increasing future sales will likely rely on building new export infrastructure, which the report says is “unlikely to be completed before 2026.”

High taxation has also hampered Gazprom, the assessment finds. In 2023, Gazprom paid an estimated 2.5 trillion rubles (USD $28 billion) to the Russian budget, around 9% of total government revenues. Plans to further increase Gazprom’s tax burden in 2024 “likely contributed to Gazprom’s decision to cut its investment for 2024 by around 15%,” according to the report.

Related:

Will Spain and France choose EU solidarity over Russian LNG profits?

You could close this page. Or you could join our community and help us produce more materials like this.  We keep our reporting open and accessible to everyone because we believe in the power of free information. This is why our small, cost-effective team depends on the support of readers like you to bring deliver timely news, quality analysis, and on-the-ground reports about Russia's war against Ukraine and Ukraine's struggle to build a democratic society. A little bit goes a long way: for as little as the cost of one cup of coffee a month, you can help build bridges between Ukraine and the rest of the world, plus become a co-creator and vote for topics we should cover next. Become a patron or see other ways to support. Become a Patron!

To suggest a correction or clarification, write to us here

You can also highlight the text and press Ctrl + Enter

Please leave your suggestions or corrections here


    Euromaidan Press

    We are an independent media outlet that relies solely on advertising revenue to sustain itself. We do not endorse or promote any products or services for financial gain. Therefore, we kindly ask for your support by disabling your ad blocker. Your assistance helps us continue providing quality content. Thank you!

    Related Posts