“gazprom” has lost its foreign currency cushion due to the war
By the end of 2024, the foreign currency reserves of the main office of PJSC gazprom—the monopoly supplier of pipeline gas from russia for export—had fallen from $862 million to just $13.5 million, a drop of 98.5%. Over the year, the company’s overall “financial cushion” shrank by roughly $650 million. And this only reflects the figures for the parent company—its subsidiaries’ account statuses were not disclosed in the report.
▫️ The main reason behind gazprom’s deteriorating financial indicators is sanctions and the drop in gas exports to European countries, which used to be its primary market. Due to massive military expenditures, the russian state can no longer afford to support the company.
The troubles of russia’s gas monopoly are not merely an internal matter for the company—they are a strong indicator of the growing crisis in the russian economy, where gazprom is one of the largest and most strategically important players.
Earlier reports revealed that due to massive losses, gazprom has been forced to cut expenses. The company has already begun laying off employees.
