Russian energy giant Gazprom has faced a significant financial blow in 2024, recording net losses of 1.076 trillion rubles ($13.1 billion), according to the Moscow Times. This marks a steep decline, with the company averaging losses of $251 million weekly, $35 million daily, and $1.4 million per hour.

Despite a rise in total revenue by 11% and a 14% increase in gas-related revenue, Gazprom ended the year with a sales loss of 192 billion rubles ($2.3 billion). The company's financial struggles were worsened by falling share prices in its subsidiary Gazprom Neft and an increased income tax rate of 25%, which led to higher deferred tax liabilities.

Gazprom's troubles began earlier, with the company posting a net loss of 629 billion rubles ($7.6 billion) in 2023 under international accounting standards—its first such deficit in 25 years. The company's efforts to maintain its position in the European market were unsuccessful, with gas exports to the EU dropping dramatically. In 2023, Gazprom delivered just 32 billion cubic meters of gas to Europe, a stark contrast to the more than 180 billion cubic meters it supplied in 2018-2019.

As a result of the ongoing financial downturn, Gazprom has been forced to implement cost-saving measures, including layoffs. Reports from January 13 indicated that the company was preparing to lay off 1,600 employees from its central office.

The primary factor behind Gazprom’s decline is the European Union's decision to reduce its dependency on Russian energy supplies following the invasion of Ukraine. Additionally, Gazprom has been cut off from its direct pipeline gas supplies to the EU after Ukraine refused to extend its transit agreement with the company, further exacerbating the financial impact.