Revealing the reason for Gazprom's sharp decline, can Russian gas "rekindle old love" with Europe?

Recently, Russian news agency Interfax reported that Gazprom Group recorded a net loss of 12.89 billion USD (equivalent to 1,076 trillion Rubles) in 2024. This is a sharp decline compared to the profit of 8.3 billion USD in 2023.

Before 2022, Gazprom was the largest gas supplier to Europe. (Source: energovg.rs)

The sharp drop in shares of Gazprom Neft - Gazprom's oil subsidiary - was the main reason for the group's net loss.

In addition, the Russian oil and gas giant was also heavily affected by Western sanctions after Moscow launched a special military operation in Ukraine in February 2022. The sanctions caused a serious decline in revenue from European customers.

Gazprom is expected to publish financial reports according to international standards by the end of April 2025, but experts predict the results will not be positive.

Before 2022, Gazprom was the largest gas supplier to Europe. However, since February 2022, the continent has gradually eliminated supplies from Russia and "befriended" other partners.

To "fill the gap" in Europe, Russia has increased gas exports to China. However, this market cannot fully compensate for the decline from Europe, putting great pressure on Gazprom's revenue.

In the coming time, according to experts, if a peace agreement between Russia and Ukraine is established, Gazprom can quickly increase production to serve the needs of the old continent.

Scholar Sergey Vakulenko of the Carnegie Endowment for International Peace said that the Russian oil and gas giant could completely pump gas back from its fields in Siberia within just one week, if there were orders from Europe.

Source: https://baoquocte.vn/he-mo-ly-do-khien-gazprom-truot-doc-manh-lieu-khi-dot-nga-co-the-noi-lai-tinh-xua-voi-chau-au-308089.html