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Gazprom’s sales are collapsing: in 2023 the Russian energy giant recorded a loss of 629 billion rubles (equal to 6.9 billion dollars), the worst in recent decades. The Russian invasion of Ukraine has in fact led to the collapse of sales in Europe, its main source of income.
Sales halved
Gazprom’s revenues thus fell by almost 30% year-on-year to 8.5 trillion rubles, with gas sales falling from 6.5 trillion rubles in 2022 to 3.1 trillion rubles. Analysts point out that Gazprom has failed to adapt to the loss of the European market, with revenues from gas sales outside Russia falling from 7.3 trillion rubles in 2022 to 2.9 trillion rubles last year. year. Profits from oil, gas condensate and petroleum products instead rose to 4.1 trillion rubles (+4.3%), too little to compensate for the losses of the main business.
Insignificant share in Europe
European countries, meanwhile, have found alternative sources of gas: Russia’s share of Europe’s gas imports fell from 40% in 2021, the last full year before the invasion, to 8% in 2023, according to the EU.
Dramatic decline
The results highlight the dramatic decline of Gazprom, which since the collapse of the Soviet Union has been one of Russia’s most powerful companies, often used as leverage to resolve disputes with neighboring countries, such as Ukraine and Moldova.
The numbers also expose the inconsistency of Russian government propaganda, which has often snubbed Europe by claiming that Moscow was able to quickly find alternative sales channels outside the EU.