Russian invasion and escalation of relations with the West have seriously limited Gazprom's activities - British intelligence
Kyiv • UNN
Russia's invasion of Ukraine and deteriorating relations with the West have severely constrained Gazprom's operations, resulting in the largest annual losses in 25 years and limiting its profits until at least 2030.
Russia's full-scale invasion of Ukraine and the further degradation of the Kremlin's relations with the West have severely limited Gazprom's activities. the Russian energy company will receive limited profits at least until 2030, according to a new report by the British Ministry of Defense based on intelligence, UNN reports.
Details
A British intelligence report says that Gazprom, one of Russia's state-owned energy companies, has reported its largest annual loss in 25 years. In 2023, Gazprom's revenues fell by about 30%, resulting in an annual net loss of about 629 billion rubles ($6.9 billion).
The British Ministry of Defense believes that Russia's invasion of Ukraine in 2022 and the subsequent degradation of Russia's relations with the West have seriously limited Gazprom's activities.
Gazprom's inability to fully reorient its exports away from dependence on European markets is likely to limit its profits until at least 2030
It is noted that although Gazprom was able to redirect some of its trading operations to alternative markets, due to infrastructure constraints, they are likely to account for only 5-10% of the lost European sales in 2023.
The British Ministry of Defense also believes that it is likely that an increase in future sales will depend on the construction of new export infrastructure, such as the Power of Siberia 2 gas pipeline.
"The high taxation of Gazprom's revenues in 2022 and 2023 has almost certainly reduced Gazprom's ability and incentives to invest in expanding its activities in alternative markets," the British intelligence service said.
The report states that in 2023, Gazprom will pay approximately 2.5 trillion rubles (28 billion US dollars) to the Russian budget, which is about 9 percent of total government revenues. The Russian government plans to further increase the tax burden on Gazprom in 2024, which probably influenced Gazprom's decision to reduce investments in 2024 by about 15 percent
