Russian energy giant Gazprom produced 13% less natural gas last year after failing to diversify its sales away from Europe following Russia’s invasion of Ukraine.
According to its annual report released today, production dropped to an all-time low of 359 billion cubic meters (bcm) in 2023, down from 412.94 bcm in 2022.
Gazprom’s natural gas output has nearly halved since 2021, plummeting from 515 bcm to its lowest level since the company’s establishment in 1989 by the Ministry of Gas Industry in the final days of the Soviet Union.
In 2023, the Kremlin-owned gas giant reported a loss of 629 billion roubles (£5.5 billion), its first annual loss since 1999, amid declining gas trade with Europe, which was once its primary market.
Gazprom has engaged in protracted negotiations with China for increased gas sales, but these talks have stalled over pricing issues.
As a result, Gazprom has shifted its focus to the low-cost domestic market and neighbouring ex-Soviet countries, such as Kazakhstan, Uzbekistan, and Kyrgyzstan.
