Gazprom Loses Billions Due to EU Market Loss
Russian energy giant Gazprom has suffered a big financial loss. According to the Moscow Times, the company made a net loss of 1.076 trillion rubles ($13.1 billion) in 2024.
The main reason for this loss is that Gazprom’s business in Europe has not been doing well. The company’s gas exports to the EU have fallen sharply from their peak levels five years ago. In 2023, Gazprom delivered just 32 billion cubic meters of gas to Europe, which is much lower than the 180 billion cubic meters it sold at its best.
Gazprom tried to keep its business in Europe going, but it was not successful. The company’s financial troubles were also made worse by a higher income tax rate and falling share prices in its subsidiary Gazprom Neft.
To make up for these losses, Gazprom is cutting costs. This means that many employees will lose their jobs. In fact, 47News reported on January 13 that the company was planning to lay off 1,600 employees from its central office.
The reason for all of this is that the EU has been trying to reduce its reliance on Russian energy since Russia‘s full-scale invasion of Ukraine. This has made it harder for Gazprom to do business in Europe. To make matters worse, Russia can no longer send gas directly through pipelines to the EU because Ukraine stopped letting Gazprom use its pipeline beyond December 31, 2024.
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