The Russian energy corporation GAZPROM has recorded a net loss for the first time since 1999 in the year 2023. The company reported a loss of around 629 billion rubles (approximately 6.4 billion euros), as evident from the recently published annual report. This stands in stark contrast to the profit of 1.23 trillion rubles achieved in the previous year.

The dramatic decline in profits is primarily due to the drastically reduced gas deliveries to Europe. In response to Western sanctions imposed in connection with the war of aggression against Ukraine, Russia decided in the summer of 2022 to significantly reduce gas exports to Europe.

Russian Media and Analysts, Who Had Initially Expected a Profit for 2023 – Albeit a Much Smaller One Compared to Previous Years – Are Surprised by the Loss. GAZPROM, a State-Controlled Conglomerate Long Regarded as the Financial Backbone of the Russian Economy, Now Faces a Financial Slump Reflecting the Consequences of Geopolitical Tensions and Related Economic Sanctions.