Russian gas giant Gazprom reports historic production low in 2023

Russian state energy company Gazprom extracted 12.5 trillion cubic feet of natural gas in 2023, the company reported on Monday in its annual report. This is the lowest output in the history of the company, founded in 1989. Since 2022, production has fallen by 13 percent, and since 2021, by nearly one-third.

The weakest data in Gazprom's history. The crown jewel of Putin's empire extracted only 12.5 trillion cubic feet of natural gas last year. Such low volumes have never been seen before. In 2022, the Gazprom Group extracted 14.5 trillion cubic feet of natural gas, and in 2021, 18.2 trillion cubic feet.

The Kremlin-owned corporation reported a net loss of 629 billion rubles (7 billion dollars) in 2023. This is the first annual loss since 1999, resulting from the reduction in 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.