“Gazprom” is in a deep crisis: it is starting to sell off its assets

Russia’s state-owned natural gas giant Gazprom reported a loss of 629 billion rubles (6.4 billion euros) last year, which is the biggest loss in the company’s history, according to the company’s annual report. The company has started selling off its assets to recover from the crisis, UNIAN writes.

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Gazprom has announced that it is looking for buyers for large properties in Moscow and the Moscow region, including office buildings, a resort complex, non-residential premises and even a parking lot.

The business of the company that manages the largest gas reserves on the planet has become unprofitable. In 2022, the company worked with a profit of 1.23 trillion rubles, which was already a drop of 41% compared to the previous year.

Gazprom’s debt has reached a record amount of 6.65 trillion rubles, exceeding the size of the liquid part of the State Welfare Fund.

Western sanctions against Russia for its full-scale war in Ukraine have severely affected Gazprom, as the company no longer has access to most of the European markets with which it had been connected for almost half a century.

Gazprom has been trying to find new export customers, but building new infrastructure is expensive and can take several years.

While Russian gas exports to China have increased, they remain relatively small – Russia pipelined about 22 billion cubic meters of gas to the country last year, just a fraction of the 230 billion cubic meters it exported to Europe on average a year ago. full-scale invasion of Ukraine.

Experts say the company could improve its prospects if it reached an agreement with Beijing on the construction of the 3,550-kilometer Sila Sibiri 2 gas pipeline, which would connect gas fields that once supplied Europe with China.

The researchers of the Russian Academy of Sciences predicted in advance that the company’s financial results for 2023 will show that it is no longer working with profit, but losses could reach one trillion rubles a year by 2025.

The previous year when “Gazprom” worked at a loss was 1999.

“Gazprom” owns 34% of JSC “Latvijas gāze” shares.

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