The world's largest natural gas company can reduce export revenue by 50%

Losing the European market could cut Gazprom's international revenue in half this year, significantly draining tax revenue for Russia.

According to Reuters calculations, based on tax and export volume data, Gazprom's revenue from overseas markets could be as low as $3.4 billion last month, compared with $6.3 billion in the same period last year.

The reason is the decrease in the amount of gas delivered to Europe, due to the conflict in Ukraine.

If this trend continues, Gazprom's export revenue for the whole year could be half of what it is in 2022.

Gazprom is currently the world's largest natural gas producer and also one of the largest enterprises in the world. the largest source of tax revenue for Russia.

Last month, Russia ran a budget deficit of 1.760 billion rubles ($24 billion), due to falling energy revenues and soaring costs. Recently, the country has had to sell off its foreign exchange reserves to cover the deficit.

In 2022, Gazprom said its exports fell 46%. However, they made a net profit of 2.5 trillion rubles ($34 billion) in the first half of the year, thanks to high gas prices in the international market due to concerns about supply disruptions.

After that, the company did not publish any more financial statements.

Gazprom CEO Alexei Miller said it paid 5 trillion rubles in taxes to the government and local authorities last year. This figure contributes nearly 20% of Russia's budget revenue.

However, 2023 could be more difficult, as world gas prices have fallen. The amount of gas they deliver to Europe is also much less now than at the beginning of last year.

The Russian Ministry of Economy forecasts that the export price of Gazprom this year may reach $ 700 with 1,000 m3 of gas. If this calculation is correct, Gazprom's export revenue will be around $35-46 billion this year.

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