Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 30 November 2021
Gazprom Reports Record Results On Surging Gas Prices
Eye-watering gas prices are equivalent to a massive increase in profits for gas companies, including Gazprom, which accounts for a third of all gas imports into Europe. The tense situation in the energy market is profitable for the company and the Russian state authorities in general. In fact, Gazprom’s bigger profits mean more money to the Russian federal budget.
Russia’s Gazprom on November 29 reported a record quarterly net profit of 582 billion roubles ($7.8 billion) for the third quarter reflecting high natural gas prices. European nations receive a third of their gas commodities from Russia. In addition, they saw record surges in energy prices following the economic recovery from pandemic-related lockdowns. Gazprom Deputy Chief Executive Famil Sadygov said in a statement that the company’s record-high profits were tied to a gas crisis in Europe, hoping for higher results in the fourth quarter of 2021. “Obviously, the price of our supplies to Europe will be significantly higher in the fourth quarter, which will have a positive impact on the full-year results,” Gazprom said in a statement. The giant is cashing record-high revenues despite the curb in gas supplies into Europe, which has contributed to a surge in prices. Russia is deliberately restricting gas supplies and is in no rush to fill its European storage facilities to speed up the launch of Nord Stream 2. That is not the only purpose of the Russian strategy. Moscow is seeking to force the European Union into some special conditions for Gazprom’s supplies to Europe by curbing the effect of the third energy package on Russian energy projects. This means long-term contracts with Gazprom.
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