Gazprom reported a record loss of 480.6 billion rubles (about 5.6 billion US dollars) for the first half of the year. This follows last year's annual loss of 629 billion rubles (approximately 6.9 billion dollars), the first in over two decades. In 2022, Gazprom had recorded a profit of 1.23 trillion rubles.

Despite these losses, the energy giant's revenues for the first half of 2024 increased by 6.7 percent, according to a report presented by Gazprom on Tuesday. The company's exports to Europe, its main market, were severely impacted by Western sanctions and other political consequences following the aggression in Ukraine. Reuters estimated that Gazprom's natural gas shipments to Europe fell by 55.6 percent to 28.3 billion cubic meters last year.

To mitigate these losses, Russia is increasing exports to countries like China and India, albeit at significant discounts. Last month, Gazprom signed a strategic memorandum of understanding with the National Iranian Gas Company (NIGC) to facilitate pipeline deliveries of Russian natural gas to Iran amidst the EU's approval of its 14th sanctions package against Moscow.

According to a report commissioned by Gazprom management and cited by the Financial Times, China's ability to negotiate lower prices than Europe for Russian gas means that Gazprom's Power of Siberia 2 pipeline exports will be less profitable, even if export volumes recover to pre-war levels. The document also predicts that by 2035, Gazprom's gas exports to Europe will average 50-75 billion cubic meters per year, roughly a third of the pre-war levels.