The war that Russia started against Ukraine is rapidly shaking the economy of the aggressor country. Thus, it became known that the losses of the Russian gas monopolist Gazprom almost doubled in the first half of 2024.
Points of attention
- Exports of Russian natural gas to Europe were significantly reduced as early as 2023.
- Russia's largest liquefied gas producer Novatek also reduced processing amid sanctions.
- Forecasts regarding the economic stability of Russia and its energy policy in the conditions of the war against Ukraine are only getting worse.
Gazprom is already feeling the consequences of the war and sanctions
The net loss of PJSC Gazprom's main company according to Russian accounting standards (RSBZ) in the first half of 2024 amounted to 480.641 billion rubles after 255 billion rubles of losses for January-June 2023, writes enkorr .
What is important to understand is that this also confirms the company's reporting.
Experts draw attention to the fact that the Russian monopolist calculates dividends from the group's consolidated profit according to international standards (IFRS).
As mentioned earlier, in addition to the gas business, it also includes oil, energy and LNG divisions.
In addition, it is noted that the dividend policy provides for the adjustment of the dividend base for non-monetary items.
The growing losses of the Russian gas monopoly are mostly due to a reduction in gas supplies to Europe, while the company's operating costs remain high, the publication emphasizes.
It is also worth noting that the export of natural gas to Europe by the Russian monopoly decreased by 55.6% in 2023.
Novatek has reduced the processing of liquefied gas to a record
On July 29, it became known that Russia's largest liquefied natural gas producer PJSC Novatek last month cut processing at its Arctic LNG-2 plant to the lowest level since February after US sanctions limited export opportunities.
More than 8 million cubic meters of gas were processed in June.
What is important to understand is almost half of the volume of processing in May.
The export of the first phase of "Arctic LNG-2" was initially planned for the first quarter of 2024, but sanctions destroyed the plans of the Russian Federation.
Last week, PJSC Novatek sent a second production line to the Arctic Hydan Peninsula, Russian media reported. This line, which should have the same capacity as the first, will arrive in place in mid-August, although the future of the facility remains in question, writes Bloomberg.
