Russia's Gazprom net losses nearly double year on year

Russian gas giant Gazprom suffered net losses from January to June 2024 almost double those in the same period last year, the Ukrainian media outlet enkorr reported on July 31.

Losses in the first half of 2024 totalled 480.64 billion rubles ($5.5 billion), while those in the first half of 2023 totalled 255 billion rubles ($2.95 billion), according to Gazprom financial statements seen by the outlet.

Gazprom has had a turbulent time since the launch of Russia's full-scale invasion – its revenue fell by 30% last year with a net loss of $6.9 billion, the largest in 25 years.

Moscow's war in Ukraine led to worsening relations with Europe, limiting the operations of the company.

The energy giant relied on European markets and failed to find alternatives after the EU moved away from Russian gas. While Gazprom found some success in other foreign markets, this only accounts for 5-10% of its European sales.

Moscow has heavily taxed Gazprom's revenues over the last two years and the company paid $28 billion to the government in 2023, accounting for 9% of the government's revenue last year.

In June, a report commissioned by the company said it would not be able to recover losses incurred from Moscow's full-scale invasion of Ukraine for at least 10 years.

The company said exports to Europe are expected to average 50-75 billion cubic meters (bcm) annually by 2035, only a third of the gas monopoly's prewar exports.

The forecast is "grim," Elina Ribakova, a senior fellow at the Peterson Institute for International Economics, told the Financial Times at the time.

"Gazprom is at a dead end, and they're very much aware of it," Ribakova said after reading the report.

Bulgaria sues Russian Gazprom, seeking compensation of more than $430 million

In 2023, the Russian gas giant suspended Bulgargaz’s long-term contract, which covered 90% of the quantities of natural gas delivered by Bulgargaz to customers.

The Kyiv IndependentKateryna Hodunova