Gazprom badly hurt by Ukraine war, says company-commissioned report

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Research ordered by Russian gas group warns it may not recover lost export revenues for more than a decade

Gazprom is unlikely to recover gas sales lost as a result of Vladimir Putin’s full-scale invasion of Ukraine for at least a decade, according to a report commissioned for the Russian energy group’s leaders. The company’s exports to Europe will average 50bn-75bn cubic metres a year by 2035, barely a third of prewar levels, the research predicted.

Gazprom’s outlook has darkened even further since the report was submitted to senior executives in November, with the company reporting a loss of Rbs629bn last year. ​​Russia is struggling to conclude a proposed deal with China for the Power of Siberia-2 pipeline, which Gazprom hopes will revive its exports. If completed on schedule in 2030, the Power of Siberia 2 is expected to bring additional capacity of 50 bcm a year.

 

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