Gazprom loses $23 billion in profit, marks worst result in three years

Russian gas monopoly Gazprom's net profit for the first half of 2023 fell to its lowest level since 2020 due to a sharp cut in gas supplies to Europe, reports Bloomberg.

Gazprom received $3.1 billion in net profit for January-June 2023, while for the same period last year the figure stood at $26.3 billion.

Gazprom ended the second quarter with a loss of $195 million.

The oil and gas giant has restricted gas flows to Europe – its once biggest market – since last year. Almost all of the main pipeline routes supplying Russian gas to Europe have been shut down, and supplies to several countries have completely stopped after they refused to pay for gas in rubles.

The fall in exports to Europe was partially offset by an increase in supplies to China, but their volumes cannot be compared with exports to Europe before the start of Russia's full-scale aggression against Ukraine.

Gazprom's pipeline exports to China are expected to reach 22 billion cubic meters in 2023, up from 15.5 billion cubic meters last year.

In the pre-war year 2021, Gazprom provided the European region, including Turkey, with about 177 billion cubic meters of pipeline gas.