Russia's Gazprom reports record low gas output amid European setbacks

Russian state energy company Gazprom extracted 355 billion cubic meters of natural gas in 2023, the company reported on Monday in its annual report. This is the lowest output in the company's history, which was founded in 1989. Production has fallen by 13 percent since 2022 and nearly one-third since 2021.

The weakest data in Gazprom's history. The crown jewel of Putin's empire extracted only 355 billion cubic meters of natural gas last year. Such low volumes have never been seen before. In 2022, the Gazprom Group extracted 411 billion cubic meters of natural gas, and in 2021, 515 billion cubic meters.

The Kremlin-owned corporation reported a net loss of 629 billion rubles (approximately 5.8 billion pounds) in 2023. This is the first annual loss since 1999, resulting from reduced gas trade with European countries.

Reuters notes that after the war in Ukraine began, Gazprom failed to diversify sales outside Europe. Discussions to increase gas sales are currently ongoing with China. Negotiations with Beijing have so far been unsuccessful due to pricing agreements.

Gazprom is shifting towards the cheaper domestic market and the countries of the former Soviet Union, including Kazakhstan, Uzbekistan, and Kyrgyzstan, which may replace European markets.