Russia’s fallen giant Gazprom selling off luxury properties as group swings to reported $12.9 billion loss.
Gazprom is looking at every avenue to cut costs, including its portfolio of luxury hotels, after the group fell to its second successive year of losses as Russia’s war with Ukraine continues to hammer energy exports.
The group’s net losses on Russian Accounting Standards (RAS) hit 1.076 trillion roubles ($12.89 billion) last year, largely attributable to a decline in the market value of shares in Gazprom’s oil division, Gazprom Neft, according to Interfax.
The same RAS figure in 2023, which doesn’t include the results of subsidiaries, gave Gazprom a profit of 695.6 billion roubles ($7.51 billion).
Gazprom Group fell to its first loss in 24 years in 2023 as EU sanctions took their toll on the group, with gas exports to the EU plunging 55% compared with 2022.
An internal Gazprom report obtained by the Financial Times last year suggested the group may not recover its pre-war export revenues until 2035 as it struggles to find alternatives to the lucrative European market.
The company has started to cut costs as a result of continued losses, reeling back years of exuberant purchases as the company basked in outsized energy revenues. In January, Gazprom confirmed it was considering laying off administrative staff amid reports headcount could fall by up to 40%.
Source: FORTUNE
