Russia's Gazprom posts $15 billion profit
Russian energy giant Gazprom posted a profit in 2024 after recording its first loss in more than two decades the previous year. The increase is attributed to improved gas exports to countries such as China, the company said.
Gazprom, once the main gas supplier to the EU, dramatically reduced its exports to the region three years ago following Ukraine-related sanctions imposed by the West and the sabotage of the Nord Stream pipelines. Russia's share of EU pipeline gas imports dropped from over 40% in 2021 to around 11% in 2024.
Gazprom's full-year 2024 net profit amounted to 1.2 trillion rubles ($14.76 billion), driven by an improved gas business and rising interest income from financial investments in its gas business and increased interest income from financial investments, according to a statement released by the company on Wednesday.
'Gazprom has strengthened its position across a number of key financial indicators in 2024, confirming the effectiveness and resilience of its business model,' the company's deputy CEO, Famil Sadygov, said, commenting on the results.
Sadygov attributed the improved performance to rising gas exports to countries such as China, and higher interest income.
Once Russia's most valuable company, Gazprom suffered record losses last year due to plummeting sales to the EU, once its key market. The company reported a net loss of $6.8 billion for 2023, the first time since 1999. This stood in stark contrast to the net profit of $13.2 billion recorded in 2022.
In 2024, revenue for Gazprom Group – which includes gas, oil, and electric power businesses – surged 25% to 10.7 trillion rubles ($130.8 billion), making it the company's second-highest results on record. The all-time high of 11.7 trillion rubles ($143 billion) was reached in 2022, when European gas prices soared amid the EU's decision to curb imports from Russia following the escalation of the Ukraine conflict.
Gazprom's spending declined by 3% to 2.4 trillion rubles ($29.5 billion). The company said its debt remained unchanged at 6.7 trillion rubles, adding that it held more than 1 trillion rubles in cash reserves.
'This reserve of funds on the balance sheet ensures the Group's high financial stability even under sanctions pressure,' Sadygov said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Russia Today
8 hours ago
- Russia Today
Russia bans World of Tanks game publisher
A Russian court has banned the operations of video game publisher Lesta, citing the owners' support for Ukraine's armed forces, TASS has reported. It's the first such ruling against a gaming company in Russia. Lesta Group is a Russian video game developer and regional publisher of 'World of Tanks' and 'World of Warships.' Based in St. Petersburg, the company has developed games since the early 2000s and was formerly part of Wargaming, the international studio behind World of Tanks. After Wargaming withdrew from Russia and Belarus in 2022 due to Western sanctions, Lesta continued operating its titles independently in the region. On Tuesday, the Tagansky District Court of Moscow granted a request by the Prosecutor General's Office to ban and classify as extremist the activities of Wargaming co-founder Viktor Kisly and Lesta owner Malik Khatazhaev. 'The court orders 100% of the companies' shares to be transferred to the Russian Federation,' Judge Mikhail Strogonov said. The ruling takes effect immediately. A source familiar with the case told TASS the decision was based on the two men's 'material support of the Kiev regime,' saying they had 'financed funds specializing in the purchase of equipment for the Armed Forces of Ukraine.' The ruling reportedly does not affect Lesta Group's operations, its partners, or its users. 'The group will continue to develop and operate its products. User support and company operations remain stable,' the source said, adding that Kisly and Khatazhaev no longer hold any rights to the company. In a statement on Telegram, Lesta Group confirmed the ruling did not apply to the company itself or its users and said services would continue without disruption. It added that the firm would come under temporary state administration – a move that, it noted, would not have been possible had the company been formally banned. Lesta said it planned to appeal what it called an 'unfair' decision.
Russia Today
14 hours ago
- Russia Today
Russia to increase gas supplies to European country
Moscow and Belgrade are negotiating a long-term deal for increased gas deliveries to Serbia after the current contract expires in September, the Russian Embassy in Belgrade has told Izvestia. The landlocked Balkan country relies heavily on Russian energy supplies, and has refused to support Western sanctions on Moscow over the Ukraine conflict. The existing agreement, which allows Belgrade to buy gas at a favorable price, was recently extended through September, ensuring continued deliveries amid ongoing negotiations for a long-term contract. 'Negotiations on the continuation of Russian gas supplies to Serbia after this date are underway,' the embassy told the news outlet on Monday. Under the terms of the extension, Gazprom will supply Serbia with 6.1 million cubic meters of gas per day at a price of €290 per 1,000 cubic meters. The rate is below the current European average of around €360, according to Dusan Bajatovic, the CEO of Srbijagas, Serbia's state-owned gas importer and distributor. Serbian Ambassador to Russia Momcilo Babic also confirmed that the new supply contract is being discussed, adding that boosting gas deliveries was agreed upon at a meeting in Moscow between Serbian President Aleksandar Vucic and Russian President Vladimir Putin on May 9. Vucic visited the Russian capital last month to attend the Victory Day celebrations. 'This question was resolved at the meeting of the two presidents,' he was quoted as saying. Babic said, however, that no date has been set for signing the deal and that the specific volumes of future supplies have yet to be determined. Serbia currently receives Russian gas via the TurkStream pipeline, which transits through Türkiye and Bulgaria. The country relies on Russian gas for over 80% of its consumption. Energy experts cited by Izvestia have warned that raising gas volumes may not be technically possible without reopening major transit routes such as Nord Stream, the Yamal-Europe pipeline, or restoring flows through Ukraine.
Russia Today
17 hours ago
- Russia Today
Kremlin comments on Ukraine talks
Expecting immediate breakthroughs in peace negotiations between Russia and Ukraine would be 'incorrect,' Kremlin spokesman Dmitry Peskov has said. His remarks come after the second round of revived negotiations between Moscow and Kiev was held in Istanbul on Monday. After the talks, both sides announced that they had agreed to conduct the largest prisoner exchange to date and indicated that direct contact would continue. The two delegations also exchanged draft memorandums outlining a roadmap towards an eventual peace deal. Commenting on the talks, Peskov emphasized on Tuesday that the 'issue of regulation is extremely complex and consists of a large number of nuances.' 'The project of the memorandum we submitted to the Ukrainian side contains many provisions, including multi variability, all aimed at eliminating the root causes of this conflict and moving towards a sustainable resolution trajectory,' the spokesman said. Peskov stressed that given the complexities of the negotiations, it would be 'incorrect to expect any immediate solutions or breakthroughs here.' However, he noted that certain agreements have nevertheless been reached, including a new prisoner swap. The spokesman stated that Russia is now expecting Ukraine's response to the memorandum that was submitted on Monday. Moscow's memorandum, which was made public after the negotiations, contains a number of demands, including Ukrainian neutrality, international recognition of Russia's new territories, and military restrictions for Kiev. Specifically, it demands that Kiev withdraw all troops from the regions that have joined Russia – Crimea, the Donbass republics, and Kherson and Zaporozhye regions – while formally recognizing these areas as Russian territory. Ukraine must also enshrine neutrality and non-nuclear status, withdraw from conflicting international treaties, disband nationalist armed groups, and limit its military capabilities. The proposal also requires Ukraine to ensure rights for Russian-speaking citizens, make Russian an official language, end religious persecution, ban Nazi and nationalist organizations, and lift sanctions on Russia. According to the proposal, a final peace treaty between Moscow and Kiev can only be signed after elections are held in Ukraine and endorsed by a legally binding UN Security Council resolution.
