HomeAboutOur WorksPublic activityPublications"Gazprom has moved into a new reality in terms of profitability"

"Gazprom has moved into a new reality in terms of profitability"

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, gave an interview to Novye Izvestia newspaper about the current state of the Russian gas industry:

— By the scale of its business, Gazprom remains a very large player, dominating the Russian and even the Eurasian market. But in terms of profitability and financial results, the company has moved into a completely different reality.

Indeed, now part of the business is unprofitable, at least the company itself says so. As for supplies to the domestic market, financial results will be very modest in the coming years, given the very high tax burden that the government has targeted Gazprom. This further complicates the financial situation of the giant.

— Will the Power of Siberia-2 change the situation?

— From the point of view of profitability, no.

— The consumption of liquefied natural gas is growing in the world. Why doesn't Gazprom get more involved in LNG?

— Gazprom would be happy to increase LNG exports, but for this it is necessary to solve a technological problem. And it is very serious for both Gazprom and NOVATEK.

— We talked about the need for reforms in the gas industry. Doesn't Gazprom itself need reform with the loss of the European gas market?

— Organizationally, everything will be more or less stable in the near future. Gazprom is no longer on the decline. The bottom of the decline in production and exports was passed last year. Now there is a slow recovery process, however, very slow. The company as a whole will improve its performance, it is already improving production.

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