Gazprom falls to first annual loss in 20 years as trade with Europe hit

Gazprom, the Kremlin-owned gas giant, reported a significant financial downturn with a net loss of 629 billion roubles ($6.9bn) in 2023, marking its first annual loss in over two decades. This loss contrasts sharply with a net profit of 1.2 trillion roubles in 2022. The decline is primarily due to reduced gas trade with Europe, previously its largest market, exacerbated by the geopolitical consequences of Russia's invasion of Ukraine and subsequent Western sanctions.

The company's total revenue also fell from 11.7 trillion roubles in 2022 to 8.5 trillion roubles in 2023, with core profit dropping significantly. Gazprom's struggles reflect broader challenges faced by Russia's energy sector under increasing international pressure. Despite these financial setbacks, Gazprom continues its domestic initiatives, like extending natural gas supplies to local households.