Russia's full-scale invasion of Ukraine has left Russian gas monopoly Gazprom struggling to recover from record losses, according to the Financial Times. Dictator Vladimir Putin is effectively destroying the company himself.
Points of attention
- To address its crisis, Gazprom's board of directors is considering merging divisions, cutting costs, and divesting non-core assets to maintain its operations.
- The unfolding situation highlights the critical state of the Russian monopolist, as it navigates through one of the most challenging periods in its history, with uncertain prospects for recovery.
Gazprom may not survive the war
Foreign analysts point out that in 2025, the total volume of supplies to Europe and Turkey may decrease by more than 5 times compared to 2019.
In addition, a drop to 47 billion cubic meters and 34 billion cubic meters is predicted in 2034, and the deficit could reach 15 billion rubles.
The Russian gas monopolist has faced serious problems, from disruption of supply chains to restricted access to the European market.
Previously, Gazprom dominated it until Russia became the cause of the worst energy crisis in Europe in the last 50 years.
Gazprom's board of directors chairwoman Elena Ilyukhina wants to merge the gas giant's disparate divisions into "a single, vertically integrated company." In addition, it is proposed to cut costs — from business trips and office rent to relations with government agencies — and get rid of non-core assets, including a network of methane filling stations.
