**Gazprom to Lay Off 1,600 Employees**
The Russian energy giant Gazprom is planning to lay off 1,600 employees from its central office. This decision comes after the company faced significant financial losses and a decline in market presence in Europe.
**Reason for Layoffs**
According to reports, Ukraine halted the transit of Russian gas to other European countries, ending an arrangement that dated back to Soviet times. This move led to a sharp decline in Gazprom’s exports to Europe, which fell by more than 80% since 2021.
**Financial Struggles**
Gazprom has suffered massive losses following the collapse of its European gas market. The company’s shares have fallen to their lowest level since January 2009, trading at 106.1 rubles ($1.01) on December 17. This represents a 33.5% decline since the start of 2024.
**Background**
The EU’s decision to pivot to alternative gas sources after the full-scale invasion of Ukraine triggered the decline in Gazprom’s exports. Europe has significantly reduced its reliance on Russian supplies, with the exception of countries like Hungary, Slovakia, and Austria. Russia’s direct pipeline gas supplies to the EU have now halted completely.
**International Reaction**
The European Union is allocating an additional 140 million euros ($143 million) in humanitarian assistance for Ukraine. Ukraine’s government has approved a measure allowing foreign companies to participate in modernizing military equipment for the Ukrainian Armed Forces.