A blow to the Russian giant. The first such loss in decades

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629 billion rubles is equivalent to approximately USD 6.8 billion and over PLN 27 billion. Gazprom has not had a net loss for 24 yearsin 2022, it boasted profits of 1.23 trillion rubles, or over $13 billion.

In reaction to these results the giant’s shares fell by 4.4 percent, the highest in over a year – comments Bloomberg. He points out that Gazprom’s largest shareholder is the Russian government, whose budget is under pressure from rising military spending and Western sanctions.

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The effect of Putin’s war

As the agency explains, the reason for Gazprom’s losses are lower market prices and limited gas exports to Western Europe, which for years was the giant’s most important export market. This changed after the Russian invasion of Ukraine began on February 24, 2022. Today, much less blue fuel flows from Russia to Europe. As much as in the early 1970s – Bloomberg calculates.

He adds that Gazprom’s revenues from gas sales dropped by 40 percent. However, revenues from oil trade are growing – by 6.7%. This year, also in the case of blue fuel, the Russian giant is counting on improvement, because it intends to export more raw material to Chin.

Russia turns to China

Although gas exports from Russia to Europe using gas pipelines are decreasing, imports of liquefied natural gas from Russia to the EU increased by up to 15 percent – pointed out in April. After Russia’s aggression against Ukraine, the EU did not impose an embargo on the import of Russian LNG. Last year, Russia sent over 15.6 million tons of raw material to EU ports.

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