Falling profits of "Gazprom" due to geopolitical turbulence.
Profits of the Russian company Gazprom fell by more than 30%. This led to damage in the amount of 629 billion rubles (almost seven billion dollars). This drop is the highest in the last 25 years.
This was reported by the British Ministry of Defense with reference to intelligence data.
As it became known, the drop in Gazprom's profits is due to geopolitical turbulence – in particular, the war that the Russian Federation launched against Ukraine and the worsening relations with the West.
“The Russian invasion of Ukraine in 2022 and the further deterioration of Russia's relations with the West have severely limited Gazprom's activities. Gazprom's failure to completely reorient its exports away from dependence on European markets is likely to continue limit its income until at least 2030,” intelligence experts say.
At the same time, even taking into account the fact that Gazprom was able to redirect part of its business to alternative markets, this reorientation is likely to cover only 5% to 10% of European sales losses in 2023.
“It is likely that an increase in future sales will depend on the construction of new export infrastructure facilities, such as the Power of Siberia 2 gas pipeline,” analysts emphasized.
They also added that Gazprom's high level of taxation on profits in 2022 and 2023 has almost certainly deprived the company of the incentive and ability to invest in expansion into alternative markets. Last year, Gazprom paid about 2.5 trillion rubles (or 28 million US dollars) to the Russian budget.
This amount is about 9% of total government revenue. According to intelligence, the Russian government plans to further increase Gazprom's tax burden in 2024, which likely contributed to the company's decision to cut its investment for this year by about 15%.
Recall that a drone crashed into the office building of the Russian Gazprom. The building's façade was damaged as a result of the attack.
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