Russia’s revenues from gas exports to the EU have collapsed eight times – FT

Oleg Davygora23:59, 05/25/23

This year, Gazprom will sell only 50 billion cubic meters of gas abroad, the minimum volume since the late 1970s.

A European energy policy official said he had every reason to believe that ” Russia has lost its gas leverage on Europe .”

According to the Financial Times, it’s not just that the price of gas in Europe has fallen by more than 90% since August 2022, when it peaked as a result of the EU gas blockade organized by Vladimir Putin with the help of Gazprom’s supply cuts. Having survived the energy crisis, the EU has broken off from the Russian gas “needle”. 

From a peaceful March 2021 to March 2023, Russian gas supplies to Europe collapsed by 74%, according to an internal document of the European Commission (EC), which was reviewed by the FT. Gazprom, on the other hand (and through it, the budget of Russia, whose leadership is in dire need of money to continue the war it unleashed) has lost tens of billions of dollars.

If in March 2022, when gas prices were already flying up, the EU paid a total of 21.4 billion euros for Russian gas supplies, then in March 2023 – only 2.7 billion euros, the EC document says. That is, Russia’s gas revenues have fallen eight times.

Cumulative deliveries from Russia, according to updated data from the EC, fell from 150.2 billion cubic meters in 2021 to 74.4 billion in 2022. Since the beginning of this year, the EU has received only 10.8 billion cubic meters from Russia.

According to the forecast of the State Council commission, Gazprom will sell only 50 billion cubic meters of gas abroad this year, the minimum volume since the late 1970s.

Russian gas trading – details

Against the backdrop of a full-scale Russian invasion of Ukraine, Gazprom ‘s net profit  under international financial reporting standards for 2022 decreased by 41% . It is noteworthy that Famil Sadygov, deputy chairman of the board of Gazprom, acknowledged the fact of falling profits, but stressed that the figures were “good”.

(C)UNIAN 2023

One comment

  1. Another own goal from the master strategist in the Kremlin. Any other country would have replaced a leader that single-handedly destroyed the country’s economy, but this is mafia land, where commonsense is in short supply.

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