The Russian gas giant, Gazprom, announced on Tuesday, August 29, that its net profits in the first half of 2023 fell to $3.1 billion, in light of Europe cutting off Russian energy resources due to its war on Ukraine.
Gazprom stated that its net profits for the first six months of this year fell to 296 billion rubles (2.8 billion euros), compared to 2.5 trillion rubles in the same period last year.
The executive vice president of the Russian company, Famil Sadegov, attributed the main reason for the decline in the company’s profits to the weakness of the ruble.
Sadegov said that the decline in exports to Europe was partially offset by an increase in supplies to China, indicating that these supplies will continue to grow within the framework of contractual obligations, according to what was reported by the French Press Agency.
The Russian currency fell more than 20% against the dollar during the first six months of this year.
At the opening of the trading session on the Moscow Stock Exchange today, Wednesday, the exchange rate of the dollar against the Russian ruble rose to 95.51 rubles. The US currency is currently trading at 96 rubles to the dollar.
During the second quarter of this year alone, the company recorded a net loss of 18.6 billion rubles ($197 million), compared to a net profit of more than one trillion rubles for the same period last year.
European countries, which depended heavily on Russian natural gas imports, raced to find other sources of gas supply after Moscow launched the war on Ukraine.
In response to this Russian war, Germany withdrew its approval of the “Nord Stream 2” project, which would have increased European dependence on Russian gas supplies.
Moscow says that its gas supplies to China doubled last year compared to the previous year, and that it hopes to increase its supplies after losing its share in the European market.
Source: French + websites + German news agency
2023-08-30 10:06:52
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