(Reuters). When the Russian State Gazprom General Manager Alexei Miller opened a stakeholder Palazo-Style building in Central St. Petersburg so that the company’s exports brought the future 11 years ago.
“This is symbolic,” he said, citing new Russian newcomers in Russia’s majority. “Europe needs Russian gas more and more.”
Instead, the stinks have come to symbolize the rapid decline in Gazprom, with almost the total loss of European markets, Russia’s ties with the West have been broken.
Together with Gazprom’s executive, the company is now taking into account that the company, along with Gazprom’s executive, is now considered that Gazprom will be able to sell the sale of Palazzo.
Gazprom probably is Russia’s business is the most difficult strike by international sanctions, which have been established three years ago after Russia’s full-length invasions from Ukraine from Ukraine. Although Russia’s economy has been elastic, growing signs of tension have appeared in several industries. Reuters previously reported that President Vladimir Putin is concerned about heavy military spending, which distort the wider economy.
Gazprom’s export staff, when the company’s most prosperous unit, which controls the sale of Soviet and Russia’s gas over more than half a century, has decreased only a few dozen employees, the same two sources report to Reuters.
Five years ago, 600 employees descended from the peak of Russian exports to Europe. The possible sale of the unit building and the reductions did not have been previously reported.
Gazprom’s Media Department and the Russian Ministry of Energy do not respond to detailed applications for the interpretation of the conclusions of the story.
In case of any European sales, the rest of the employees are mainly focused on the trial with former EU buyers, Reuters reports. “Gazprom” exports are “just peeled,” said one of the sources.
Alexey Grigar, for Pro-Kreml, thinks the National Energy Security Foundation, said Gazprom’s lesser charming attention in the near future, there would be more Russian houses.
“Gazprom has handed over the social problem of gasification and provides the economy and population at low regulated prices,” he said.
Reuters spoke to three leaders and half a dozen former and current employees on this story, on the depth of changing Russia’s most valuable company. Everyone asked anonymity, citing fear of professional consequences.
Wider cuts
Gazprom’s problems are spread outside the export department, reveal conversations with employees. Two sources told Reuters that Miller now confirmed 1,500 jobs at the headquarters of the highest skyscrapers in Russia and Europe, and in St. Petersburg.
The resignation to Gazprom has yet to be resigned, but the staff has been asked to prepare individual performances on why they will keep their work, which they say, will write employees to employees if they coincide.
The source notes that the process is planned to be completed in a few weeks.
The reductions increase about 40% of the crew in the Gazprom headquarters, but a small part of her half a million strong labor is distributed throughout Russia.
Management has made a mistake of how decisive European capitals, according to one of the leaders, who’s thinking inside the company was that Europe would quickly return to the “begging” of Russian gas supply.
Despite the economic pain of higher energy costs, the EU has not rolled sanctions.
“We have proved that we are wrong,” said the executive.
The US gas exporters quickly moved to replace Russian gas in Europe. The United States has become the biggest exporter of LNG on the continent, tripled in 2021.
The European Union aims to end the use of Russian fossil fuels by 2027, and its total gas consumption has partially decreased due to the transfer of renewable energy sources.
Last year, Gazprom was a net loss of $ 7 billion for 2023, Putin came to power from the first 1999. It posted another loss in the first 9 months of 2024, the last period of which is available in numbers.
Gazprom’s shares fell in mid-December until 2009. The lowest in January touches 106.1 rubles, less than a third of the beginning of 2024.
A few months after the annual loss, Gazprom said that last year it was selling a high-quality portfolio, which includes famous luxury hotels in Moscow and Flower Valley.
Gazprom has a long history of the introduction of luxury property, which it uses to award holidays and conferences and events of the 2014 Olympic Games.
Trump trade!
Donald Trump’s return White House has helped Gazprom’s shares recovered about 180 rubles, hoping that the rapid Ukrainian peace deal will lead to the restoration of Europe’s exports.
However, there are several signs when it would make the continent link to Russian gas, despite the financial times, reports that Putin’s long ally transports gas from Russia. Germany says it will keep its independence policy from Russia’s energy.
Even if there were appetite, Nord flow is out of service and is partially damaged.
The Cremers of the Sederation, the Vice President of the Integrated Gas Gas, announced at the International Conference of the International Week of the International Week in London in response to the Russian gas pipeline. “It depends on many things.”
He quoted several arbitration cases with Gazprom and asked: “Are clients and Europe still wanting the same dependence on Russian gas?”
In the EU markets, Gazprom’s share decreased before 35% more than 35% before EU sanctions and shows.
On Wednesday, his market capitalization is about $ 46 billion, in 2007, at a high level of 330.9 billion dollars, according to Moscow Stock Exchange, Gazprom and Reuters.
Miller’s time
As the company trusts its new role as a home gas supplier, the high ambitions of the chief executive Miller were sown. In 2007, Miller said that the company will eventually have a market capitalization of $ 1 trillion.
When it seemed possible. Russia ranks fifth of the planet’s gas resources, providing the world’s largest natural gas company.
At his height, Gazprom was formed at the Soviet Union from the Ministry of Gas Industry. Created revenues that amounted to more than 5 percent of the annual gross domestic product of Russia’s $ 2 trillion.
The company is conducted by Putin’s close friend, as the Russian president was the mayor of the 1990s in the 1990s for the last 24 years. Miller has been in the list of US sanctions since 2018, ban US citizens and entities from any transaction with him.
Gazprom controls all cities in Siberia and in the Arctic, such as Nadm, where tens of thousands of employees and their families depend on it as the only employer. In 2023, Reuters said to Rei Fuel and Energy Minister Yuri Shafranik, who “Gazprom” is a “state.”
The sources of “Reuters” spoke that described the plans for the reduction of work or the closure of production assets in the cities of such a company.
Steppes too far away.
Putin’s long promise is optimistically optimistically optimistic to replace Europe’s markets. Even more ambitious projects, currently considered the east of tube gas, cannot make up to half the previous annual export of 180 billion cubic meters (BCM).
Most of Russia’s gas passed pipelines to Europe. When Germany and other European countries have stopped buying it, there is no place to go excess.
In contrast, Russian oil exporters were able to transform tanks in Asian countries, which have not imposed sanctions.
Although gas production was slightly restored in 2023, there was little ability to expand the trade in domestic demand and China.
Now there is only one way for Russia to supply gas pipeline gas to China, the power of Siberia pipeline, which transports 38 BCM per year.
The second small annual pipeline is being built, which is carried out at 10 BCM capacity a year, until 2027 connects the Pacific Ocean Sakhalin Island China.
Russia and China have held negotiations for more than a decade to build a third pipeline, the power of Siberia 2 to wear 50 BCM and more than one tenth of Chinese gas consumption. This program will spend years full to develop and discuss discussions due to price differences, media reports.
In May, Russian Deputy Prime Minister Alexander Novak said that Russia and China expects to sign an agreement on the force of Siberia 2 gas pipeline in the near future.
Putin and China President Si Jin Zinen discussed Siberian-2 government, Interfax news agency reported, but no agreement was reached.
The Chinese National Oil Corporation, which deals with Gazprom, refused to comment on the talks. The Russian government did not respond to the request of the comment.
Even if the power of 2 Siberian pipeline has completed, the volumes and pricing conditions will probably be much lower than the export of the polls of the GLOBAL ENERGETIC COLLECTIVE COMMITTEE.
“Until 2030, Russian gas exports may fall by 55-80% compared to 2022, a year of record high revenues for the Russian gas industry – $ 165 billion.
(Report by Reuters; Editing by Simon Webb Daniel)
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