Russian Gazprom records biggest losses in 25 years: British intel

Photo: Gazprom suffered record losses in 25 years (Getty Images)

Russian Gazprom has experienced record losses in the last 25 years. Meanwhile, the Kremlin plans to further increase taxes on one of the largest state-owned companies, reports the Ministry of Defense of Britain on X.

In 2023, Gazprom's revenues plummeted by approximately 30%, resulting in an annual net loss of around 629 billion rubles ($6.9 billion). Russia's war against Ukraine and deteriorating relations with the West have curtailed Gazprom's operations.

Intelligence suggests that the Russian company's profits will continue to decline until 2030 due to a shift away from European markets. Gazprom managed to redirect some of its exports to alternative markets, but this only compensates for 5% to 10% of the lost European sales in 2023.

According to intelligence analysts, Gazprom's sales could increase through the construction of new infrastructure, such as the Power of Siberia 2 gas pipeline.

In 2023, Gazprom paid $28 billion to the Russian budget, accounting for 9% of the total revenues of the Russian Federation's budget.

"The Russian government plans to further increase the tax burden on Gazprom in 2024, which likely contributed to Gazprom's decision to cut its investment for 2024 by around 15 per cent," the summary states.

Sanctions against Russia

It is worth noting that Ukraine's partner countries have imposed and intensified sanctions against Russia following the start of full-scale invasion.

In particular, the United States and Canada have expanded sanctions against the Putin regime. The European Union has introduced over 10 packages of sanctions. According to media reports, the new EU sanctions package may include restrictions on gas trade with Russia.

Furthermore, since the start of the full-scale war in Ukraine, Europe's dependence on Russian gas has significantly decreased.