The loss of a key European market has dealt a severe financial blow to Russian energy giant Gazprom, resulting in net losses of 1.076 trillion rubles ($13.1 billion) in 2024
The downturn has forced Gazprom to implement cost-cutting measures, including mass layoffs. On Jan. 13, Russian media outlet 47News reported that the company was preparing to lay off 1,600 employees from its central office.
Nice, let’s hope for bigger losses in 2025.
how do you manage to lose money on a business that consists of these two steps:
- drill a hole in the ground
- sell what comes out
Lot of it is in the arctic/very harsh climate and needed europe / us expertise to get extracted. That expertise is gone now.
Ukraine has shut down refining plants, and also the sanctions has worked.
And of course the eu buys less.
Step 2 is tough when nobody wants to buy your product.
They want it, they have just restricted their ability to buy it. Also, didn’t Ukraine blows up the pipeline, meaning the gas has to be moved by ship
Ukraine helped. Also, they’re taxed at almost exactly their profit to maximize state revenue. It’s not quite state owned, but it’s close.
Plus, I’m sure a ton of corruption, stealing money directly from within the company.
and this year will get worse, with Ukraine cutting off the last Russian gas pipeline to the EU.
There’s still the Turkish gas, of which 40 % comes from the Russia. But yes, the Russian gas sales revenues are dwindling merrily :)
