Russia’s state owned gas company, Gazprom, announced a net loss for 2023 of 629 billion Rubles ($6.9 billion). This fell far short of expectations, with analysts expecting the company to pull a $4.9 billion profit for 2023 (that’s a difference of $11.8 billion between predictions and reality).
In 2022, Gazprom had pulled in $13.1 billion. 2023’s loss is the first time in 22 years the company has had an annual loss.
Gazprom’s fortunes have taken a sharp dive since the start of the Russian invasion of Ukraine, between sanctions and the efforts of European countries that were customers making efforts to divest themselves of their dependency to Russian gas. It’s estimated that Gazprom’s exports to Europe declined by 55% in 2023.
Europe, after Russia tried to use reducing gas supplies to force countries to reduce sanctions, turned to the US, North Africa, and Qatar for it’s gas supply, significantly reducing their dependence on Russian gas. Additionally, 2023 was warmer than expected, meaning the demand for gas was not as high as anticipated.
Gazprom has been trying to develop new markets for its gas, particularly India and China. This includes trying to develop a 1,700 mile gas pipeline to China; however, so far China has shown little interest in such a project.
Russia’s Gazprom posts first annual loss in 20 years as sales to Europe collapse
Gazprom plunges to first annual loss in 20 years as trade with Europe hit
Gazprom sees worst loss in decades as European exports falter