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Russian energy giant Gazprom plunged to its biggest loss in at least a quarter of a century after gas sales more than halved in the fallout from Vladimir Putin’s war in Ukraine.
The loss of Rbs629bn ($6.9bn) in 2023 underlines how the Russian president’s invasion of Ukraine has ravaged the state-owned natural gas monopoly, leading to plummeting sales to Europe, its main source of income.
Gazprom’s revenues fell almost 30 per cent year on year to Rbs8.5tn, with gas sales dropping from Rbs6.5tn in 2022 to Rbs3.1tn.
Gazprom’s Moscow-listed shares fell more than 4.4 per cent on the news. Most Russian analysts had expected it to make a small profit.
Analysts said the losses showed how Gazprom, once a cash-rich “national champion” that used its stronghold over Europe’s energy supply as a geopolitical weapon, had failed to adapt to losing the EU market.
Gazprom’s revenue from gas sales outside Russia fell from Rbs7.3tn in 2022 to Rbs2.9tn last year, a drop analysts said was mostly driven by the loss of its European sales.