After the outbreak of hostilities, the share of Russian exports to Europe fell and the monopolist’s share value plummeted by 88%, forcing the company to burn unsold gas.
Russian monopolist Gazprom is facing one of its biggest crises when the Kremlin launched a full-scale invasion of Ukraine. Speaking of which He says in the Policy publication material.
Journalists believe that Russian President Vladimir Putin, by giving the order to invade Ukraine, accidentally sacrificed the monopolist Gazprom.
The Russian monopoly’s share of gas exports in the European market has dropped from 40% to just 9% and the Nord Stream pipelines, on which Russia has spent more than 20 billion euros, are inactive at the bottom of the Baltic Sea. Politico notes that after the invasion of Ukraine, the value of Gazprom’s shares fell by 88% and, in conditions of international isolation, the company is forced to burn a large amount of unsold fuel.
Adnan Watansever, senior lecturer and expert on Russian energy at King’s College London, believes the monopolist is going through an existential crisis. The prospects for further growth of “Gazprom”, according to him, are somewhat limited and it is possible that in the future the company will have to significantly reduce gas production.
Vatansever predicts that the monopolist will face catastrophic financial problems as early as 2025 if Europe can quickly shut down Russian fuel supplies.
James Henderson, director of energy transition studies at the Oxford Institute for Energy Studies, believes Vladimir Putin will not let Gazprom fail, not only for its symbolic value, but also because the company controls the entire pipeline system in Russia. , and also carries out the supply of half of the energy in the country.
“By the second half of this decade, the question certainly arises as to whether Gazprom will be able to continue operating at the same volume as it is now. This will be a case where it will potentially have to reduce production or slightly reduce the company’s staff,” Henderson added, commenting on the immediate prospects for a monopolist.
Note that Ukraine is preparing new sanctions against Russian companiesunder which the “daughter” of the monopolist “Gazprom” can also fall.
Also Focus in its material analyzed in detail, what threatens to stop the transit of Russian gas through Ukraine and what is the benefit for Gazprom.
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