Lost billions of dollars, like Beijing “left in the mud” Moscow

Once the most profitable Russian company recently announced an annual net loss of seven billion dollars, its first since 1999, which followed a decline in trade with Europe.

Gazprom's problems reflect the profound impact European sanctions have had on Russia's gas industry, as well as Moscow's growing partnership with China.

Moscow has more easily absorbed the impact of international sanctions on oil exports, as they were able to turn exports from sea to buyers outside Europe.

Gazprom relied on Europe as its largest retail market until 2022, when the conflict prompted the EU to cut Gazprom's gas imports.

The mysterious explosions in the Nord Stream underwater gas pipelines, connecting Russia and Germany, in September 2022 also significantly undermined the Russian-European gas trade. Russia then addressed China, seeking to increase pipeline gas sales to 100 bcm annually by 2030.

Russia could place its greatest hope on the Power of Siberia 2 gas pipeline, which will pass through Mongolia and through which it is planned to export 50 bcm annually.

However, some problems emerged, mainly because of insufficient price and other issues.

Russia expects the price of gas for China to continue to decline gradually over the next four years, while the worst scenario does not exclude a 45 percent drop in 2027 compared to 2023.