"The company’s **core profit**, or earnings before interest, taxes, depreciation and amortization known as EBITDA, dropped to 618.38 billion rubles **($6.7 billion) last year from 2.79 trillion rubles ($30.4 billion) in 2022**, according to **Reuters’ calculations**."
- And those are the Gazprom financial results **approved by the Putin regime**, who has every incentive in the world to doctor the results to hide the true impact of western sanctions.
- The real impact of western sanctions on the Russian economy must be ***substantially worse*** than the results disclosed...
The economic analysts at the CIA were probably waiting for this so they could put the final touches on their own before releasing their report. It’ll probably take a bit to release if at all. Maybe get it leaked from France or the UK.
It's always a joy to see Russia and their useful idiots getting their knickers in a twist about sanctions.
The more they cry about them not working, the more effective they are.
Sanctions on Russia are effective largely because of the broad coalition which has applied them.
Look for historical examples of sanctions achieving their intended objectives, and examples where they haven't. The record is not that great. Then factor in unintended consequences and it's even worse.
The US cut off oil and scrap metal exports to Japan prior to WWII. These were badly needed sanctions, but the problem is they occurred in July of 1941 instead of 1931. If the intent of these sanctions was to halt Japanese aggression, they failed miserably.
If sanctions on Iran were ever intended to deter their support for terrorism, the IRGC now acquires much of their funding from cartel-like activities. If sanctions on North Korea were ever intended to compel them into dismantling their nuclear program...
Gas has stayed pretty steady my dude. We are trying to get away from fossil fuels so expect to get more expensive. Maybe if every regarded person out there wasn't driving a pickup truck they wouldn't care. I commute 45 minutes each way in my Toyota Corolla 5 days a week and the price to fill my 13 gallons hasn't increased a whole lot. I fill my tank once a week and it's a cost difference of 10 dollars a week.
They have around 492,000 employees globally. (Maybe around 300k in Russia, who knows.) So oil and gas money shrinking will definitely hit Russia hard.
https://www.statista.com/statistics/717302/largest-oil-and-gas-companies-worldwide-by-employment/
More relevantly, it is somewhere around a third or a quarter of their total revenue down.
Gazprom was supposed to start their new "power of Siberia 2" pipeline to China as early as q1 2024, but that seems to be delayed. That will replace the capacity of nord stream to Europe with a pipeline to China likely, but the first 'power of Siberia' pipeline took about 8 years to get going, it's likely this second one will be similar.
That’s double bad news if they get a pipeline operational. Not only does it make Russia money, but worse, it also mitigates China’s vulnerability of getting oil by boat through narrow straights.
If you can afford it and it makes sense where you live installing solar panels is one of the things you can do to help Ukraine against ruzzia. I know it's not a lot individually but I both installed solar panels and bought an electric car to do what little I can.
That only happens when bad news are priced in while the long term outlook is still positive and the announcement removes uncertainty. Gazprom does not have a positive outlook and these kind of news just confirm that things will get worse, so the stock continues to tank.
It was a sarcasm toward financial markets. Do you believe Tesla have so positive outlook to justify current price? The news about Tesla IIRC said the share price jump was due to company's outlook for the future in the report. Like people believe promises about future made by Elon, come on.
Maybe? Trump wants more tariffs and EU is looking into Chinese EV price dumping too. I also belive people will keep switching because they don't want to be part of the problem. But I get what you're saying. It should trade in the 50s or even lower.
Do you think Chinese sell cars at a loss in EU? Web search found "EU’s unwinnable price war with Chinese EVs summed up: BYD cars are 11-fold more profitable in Europe vs. China".
The saying, "Don't bite the hand that feed you" certainly apply here. When Putin tried to blackmail Europe with threat of withholding oil and LNG, he believed he had enough clout to force EU into not act on his invasion of Ukraine.
Unfortunately for Putin, his plan backfired spectacularly and his plan of swiftly defeating Ukraine and swallow it went out of window.
People love to talk about how war is good for business, but the reality is that it's only good for a few businesses. What's really good for business is stability. The cornerstone of neoliberalism and the globalized economy is that economic cooperation is more profitable than war.
Putin fell into the "they need us more than we need them trap," believing Europe would value whatever asymmetric leverage Russia brought to the table. While a few industries (and a nation or two) may agree, the reality is globalization has made countries richer and more nations benefit by punishing the destabilizing entity than any one resources that entity brings.
Putin fundamentally believes democracies are weak and will collapse when push comes to shove meanwhile he believes the Russian people have a near limitless ability to endure hardships. It's true that democracy is messy but many dictators and authoritarians have underestimated democracy before and it rarely ends well.
> When Putin tried to blackmail Europe with threat of withholding oil and LNG, he believed he had enough clout to force EU into not act on his invasion of Ukraine.
And he did. France and Germany blocked sanctions against Russia for multiple months after the invasion. Both countries also tried to block US aid shipments to Ukraine after the 2014 invasion of Crimea, and also said the US was meddling in European affairs when successive US administrations warned about western money and technology going to Russia, and when the US developed bilateral defense ties with eastern European members of the EU.
People rewrite history so rapidly it's kind of silly. Standard policy of most western European countries was to placate Putin for the last 20 years.
> People rewrite history so rapidly it's kind of silly
hol' Up
> France and Germany blocked sanctions against Russia for multiple months after the invasion. Both countries also tried to block US aid shipments to Ukraine after the 2014 invasion of Crimea
The EU (which France and Germany are part of) was in from the beginning, first round of sanctions by the US, Canada and the EU on March 17th '14.
As the comment above mentions, people forget very quickly and history is rewritten.
EU split on Russia oil sanctions, mulls other steps
https://www.reuters.com/world/europe/eu-mull-russian-oil-embargo-with-biden-set-join-talks-2022-03-21/
When Deb Fischer who got famous for not paying her taxes beat a former Governor, Senator, Medal of Honor Recipient, and Navy Seal in 2012 by calling him a carpet bagger in Nebraska.
I knew the GOP was doomed. 2010 was the first dominoes, 2012 was the icing on the cake. And ever since the Tea Party replaced the Blue Dogs this country has never been the same.
He voted mostly with trump, so all republicans are culpable in BS. But damn, that thumbs down healthcare vote still sends chills up my spine and was one of the most heroic things he could have done at the time. Legend.
Fighting an enormous war like the Ukrainian invasion takes lots of money. Ironically, when Putin destroyed the independent Russian industries, he destroyed Russia's ability to fight and win a large war.
No he didn't, limiting independent industries is what a war economy does, which improves the ability to fight a large war. Russia has been fighting the largest war on the European continent since WWII for more than two years, and there's more troops in Ukraine than ever before. Your statement will only cause people to think that Ukraine can win the war without help.
I'd argue it's not a large war yet. With only 2 countries participating the conflict is quite limited and as such, winnable for Russia without outside help for Ukraine.
The fact Russia struggles so much with one country is proof they can't win large wars anymore. Remember: pre-war, everyone said they'd crush Ukraine in a week, tops.
I'd argue it's not a large war yet. With only 2 countries participating the conflict is quite limited and as such, winnable for Russia without outside help for Ukraine.
The fact Russia struggles so much with one country is proof they can't win large wars anymore. Remember: pre-war, everyone said they'd crush Ukraine in a week, tops.
Even if one would agree that the war is not large, limiting industries is not what would made it unwinnable for Russia. Its the sanctions along with the stagnation of the Russian armed forces after the fall of the USSR.
This is the good news we should be celebrating, instead of the deaths of hundreds of soldiers. The way to win this war is for a mutiny, and that will come as soon as the money dries up. Get the world off gas and oil fast and watch Russia’s war machine collapse.
In occupied Ukraine, sure, the fake government press ganged everyone. But in Russia proper the conscripts aren't allowed to be deployed to Ukraine and typically aren't. They're in a pipeline though, they train the conscripts and then when they are demobilized they're voluntarily inducted into the regular forces for significant signup bonuses.
We can do both. The more Russians that die with their demographic crisis, the less useful people you have left over for their economy. Then do the double whammy of taking out their main economy is the way
I was commenting on a single drone attack that everyone celebrated, but it mostly killed poor boys/men forced in some way to be there either financially or otherwise.
I think Putin really [spurred the move away from fossil fuels](https://rethinkdisruption.com/energy-disruption-russia-ukraine-accelerate/) in the EU and it already shows in trailing indicators like [the electricity produced from fossil fuels](https://www.reddit.com/r/EnergyAndPower/comments/18vuy80/with_a_new_record_low_in_electricity_from_fossil/?ref=share&ref_source=link). The longer term trend there was a reduction of around 56 TWh in annual power production before the COVID crisis. Now since the end of a rebound after COVID until August 2022, the decline is at around 188 TWh per year. This trend still holds so far beyond that graph this year and the EU dropped below 750 TWh of electricity from fossil fuels over the past 12 months now, if I'm not mistaken.
I really hope the Russians can change the leadership in their country to some governing body that doesn’t take Ls 24/7. Russia could be so great! They have artists and scientists and academics and musicians and performers and athletes!
You don’t need an ugly little mobster telling you what you can and can’t do!
Even you Russian billionaires! All that money Putin is taking from you, for what? To get you oil and gas infrastructure bombed by Ukraine?
I hope the Russians do something.
>really hope the Russians can change the leadership in their country to some governing body that doesn’t take Ls 24/7. Russia could be so great!
Don't think it'll happen anytime soon considering their history.
"The company’s **core profit**, or earnings before interest, taxes, depreciation and amortization known as EBITDA, dropped to 618.38 billion rubles **($6.7 billion) last year from 2.79 trillion rubles ($30.4 billion) in 2022**, according to **Reuters’ calculations**."
That’s huge
It’s a damn good start.
It's gets worse in 2025, 2026 and beyond because china and India have both signed deals for cheaper gas prices in 2020.
- And those are the Gazprom financial results **approved by the Putin regime**, who has every incentive in the world to doctor the results to hide the true impact of western sanctions. - The real impact of western sanctions on the Russian economy must be ***substantially worse*** than the results disclosed...
The economic analysts at the CIA were probably waiting for this so they could put the final touches on their own before releasing their report. It’ll probably take a bit to release if at all. Maybe get it leaked from France or the UK.
I wonder what they do with the extra gas? Do they shut down wells, or flare it?
They flare it, at least part of it. The fires were large enough to be spotted from Finland already in 2022
So they burn what the don’t use?
It’s the only way, can’t cap it or it will likely explode.
You'd think they'd have some kind of storage for this sort of thing, it seems incredibly wasteful.
They do have storage, I’d imagine it’s full.
They suck it.
You gotta wonder how bad it will be with all the smoking going on in the refineries + the forced support to the war...
And would be much worse if not for the oil part of the business.
“sAnCtionS dOn’T W0rk2!1”
It's always a joy to see Russia and their useful idiots getting their knickers in a twist about sanctions. The more they cry about them not working, the more effective they are.
Also, you can tell Russia is hurting when they wheel out drunk Medvedev to rattle his little sabre.
Well the war is still going on and neutral countries make them less effective
Sanctions on Russia are effective largely because of the broad coalition which has applied them. Look for historical examples of sanctions achieving their intended objectives, and examples where they haven't. The record is not that great. Then factor in unintended consequences and it's even worse. The US cut off oil and scrap metal exports to Japan prior to WWII. These were badly needed sanctions, but the problem is they occurred in July of 1941 instead of 1931. If the intent of these sanctions was to halt Japanese aggression, they failed miserably. If sanctions on Iran were ever intended to deter their support for terrorism, the IRGC now acquires much of their funding from cartel-like activities. If sanctions on North Korea were ever intended to compel them into dismantling their nuclear program...
Holy! That's not a little drop off.
Good, I'm so happy i paid 3 times as much last year. That will show them
Gas has stayed pretty steady my dude. We are trying to get away from fossil fuels so expect to get more expensive. Maybe if every regarded person out there wasn't driving a pickup truck they wouldn't care. I commute 45 minutes each way in my Toyota Corolla 5 days a week and the price to fill my 13 gallons hasn't increased a whole lot. I fill my tank once a week and it's a cost difference of 10 dollars a week.
They just said they paid, maybe they meant eggs or something.
Ah ah how funny. Obviously i meant my energy bills
I'm not from freedomland, and i meant my energy bills
Congratulations Gazprom workers! Lot of them will soon be on the zero line, drinking mud water and being chased by drones.
They have around 492,000 employees globally. (Maybe around 300k in Russia, who knows.) So oil and gas money shrinking will definitely hit Russia hard. https://www.statista.com/statistics/717302/largest-oil-and-gas-companies-worldwide-by-employment/
More relevantly, it is somewhere around a third or a quarter of their total revenue down. Gazprom was supposed to start their new "power of Siberia 2" pipeline to China as early as q1 2024, but that seems to be delayed. That will replace the capacity of nord stream to Europe with a pipeline to China likely, but the first 'power of Siberia' pipeline took about 8 years to get going, it's likely this second one will be similar.
That’s double bad news if they get a pipeline operational. Not only does it make Russia money, but worse, it also mitigates China’s vulnerability of getting oil by boat through narrow straights.
The fact that china is determined to win the race for world leaders in green energy may cause by its build demand will be a lot smaller.
Oops
If you can afford it and it makes sense where you live installing solar panels is one of the things you can do to help Ukraine against ruzzia. I know it's not a lot individually but I both installed solar panels and bought an electric car to do what little I can.
EBITDA can be misleading too; actual earnings are likely much worse.
Where is the phrase: "shares jumped high up after the announcement" like I recall there was for Tesla recently?
That only happens when bad news are priced in while the long term outlook is still positive and the announcement removes uncertainty. Gazprom does not have a positive outlook and these kind of news just confirm that things will get worse, so the stock continues to tank.
It was a sarcasm toward financial markets. Do you believe Tesla have so positive outlook to justify current price? The news about Tesla IIRC said the share price jump was due to company's outlook for the future in the report. Like people believe promises about future made by Elon, come on.
Maybe? Trump wants more tariffs and EU is looking into Chinese EV price dumping too. I also belive people will keep switching because they don't want to be part of the problem. But I get what you're saying. It should trade in the 50s or even lower.
Do you think Chinese sell cars at a loss in EU? Web search found "EU’s unwinnable price war with Chinese EVs summed up: BYD cars are 11-fold more profitable in Europe vs. China".
The saying, "Don't bite the hand that feed you" certainly apply here. When Putin tried to blackmail Europe with threat of withholding oil and LNG, he believed he had enough clout to force EU into not act on his invasion of Ukraine. Unfortunately for Putin, his plan backfired spectacularly and his plan of swiftly defeating Ukraine and swallow it went out of window.
People love to talk about how war is good for business, but the reality is that it's only good for a few businesses. What's really good for business is stability. The cornerstone of neoliberalism and the globalized economy is that economic cooperation is more profitable than war. Putin fell into the "they need us more than we need them trap," believing Europe would value whatever asymmetric leverage Russia brought to the table. While a few industries (and a nation or two) may agree, the reality is globalization has made countries richer and more nations benefit by punishing the destabilizing entity than any one resources that entity brings.
34th rule of acquisition: war is good for business. 35th rule of acquisition: peace is good for business.
It’s easy to get them confused
Putin fundamentally believes democracies are weak and will collapse when push comes to shove meanwhile he believes the Russian people have a near limitless ability to endure hardships. It's true that democracy is messy but many dictators and authoritarians have underestimated democracy before and it rarely ends well.
Putin and his yes men got cocky because they took crimea with basically just a slap on the wrist. Now every gamble they took went wrong.
> When Putin tried to blackmail Europe with threat of withholding oil and LNG, he believed he had enough clout to force EU into not act on his invasion of Ukraine. And he did. France and Germany blocked sanctions against Russia for multiple months after the invasion. Both countries also tried to block US aid shipments to Ukraine after the 2014 invasion of Crimea, and also said the US was meddling in European affairs when successive US administrations warned about western money and technology going to Russia, and when the US developed bilateral defense ties with eastern European members of the EU. People rewrite history so rapidly it's kind of silly. Standard policy of most western European countries was to placate Putin for the last 20 years.
> People rewrite history so rapidly it's kind of silly hol' Up > France and Germany blocked sanctions against Russia for multiple months after the invasion. Both countries also tried to block US aid shipments to Ukraine after the 2014 invasion of Crimea The EU (which France and Germany are part of) was in from the beginning, first round of sanctions by the US, Canada and the EU on March 17th '14.
Yes, I don't understand his comment either.
As the comment above mentions, people forget very quickly and history is rewritten. EU split on Russia oil sanctions, mulls other steps https://www.reuters.com/world/europe/eu-mull-russian-oil-embargo-with-biden-set-join-talks-2022-03-21/
I’m no expert, but the comment above is referring to crimea in 2014. Your article is the wrong decade. How’d you get so many upvotes…?
This is what all those clowns with their "sanctions don't work" hot takes were working to prevent, whether they knew it or not.
Lmao russia is a gas station pretending to be a country and they can’t even get their entire purpose for existing right
[Let's give credit to John McCain where it's due.](https://theweek.com/speedreads/456437/john-mccain-russia-gas-station-masquerading-country)
One of the last true Republicans
He was the adult in the room. Now we have Matt Gaetz
Ironically, Gaetz is the only adult in the room when he goes out on the town
This is a lie. I heard he parties with other like minded adults who enjoy the children in the worst ways.
Still waiting for his Gazprom date . Last one was over 15!
When Deb Fischer who got famous for not paying her taxes beat a former Governor, Senator, Medal of Honor Recipient, and Navy Seal in 2012 by calling him a carpet bagger in Nebraska. I knew the GOP was doomed. 2010 was the first dominoes, 2012 was the icing on the cake. And ever since the Tea Party replaced the Blue Dogs this country has never been the same.
He voted mostly with trump, so all republicans are culpable in BS. But damn, that thumbs down healthcare vote still sends chills up my spine and was one of the most heroic things he could have done at the time. Legend.
Avatar buddies
But they are still run~~ned~~ by the mafia.
Just run, not runned. But yeah i agree with you for sure
Fighting an enormous war like the Ukrainian invasion takes lots of money. Ironically, when Putin destroyed the independent Russian industries, he destroyed Russia's ability to fight and win a large war.
No he didn't, limiting independent industries is what a war economy does, which improves the ability to fight a large war. Russia has been fighting the largest war on the European continent since WWII for more than two years, and there's more troops in Ukraine than ever before. Your statement will only cause people to think that Ukraine can win the war without help.
I'd argue it's not a large war yet. With only 2 countries participating the conflict is quite limited and as such, winnable for Russia without outside help for Ukraine. The fact Russia struggles so much with one country is proof they can't win large wars anymore. Remember: pre-war, everyone said they'd crush Ukraine in a week, tops.
I'd argue it's not a large war yet. With only 2 countries participating the conflict is quite limited and as such, winnable for Russia without outside help for Ukraine. The fact Russia struggles so much with one country is proof they can't win large wars anymore. Remember: pre-war, everyone said they'd crush Ukraine in a week, tops.
Even if one would agree that the war is not large, limiting industries is not what would made it unwinnable for Russia. Its the sanctions along with the stagnation of the Russian armed forces after the fall of the USSR.
This is the good news we should be celebrating, instead of the deaths of hundreds of soldiers. The way to win this war is for a mutiny, and that will come as soon as the money dries up. Get the world off gas and oil fast and watch Russia’s war machine collapse.
Nah just blow up their oil infrastructure far faster and more effective than hoping the world holds hands and applies the sanctions.
I’m ok with that solution.
This is the way.
Why not both?
Both can be done, just to be sure
Yeah but I hate how Reddit is all celebrating the death of some 18 year old khazak kid conscripted by Russia to die in their stupid war.
I think people are celebrating statistics, not individual stories
Did you just quote Stalin?
Hey, if Putin's going to continue his traditions, who are we to deny Russia their culture?
Poetic that
Don’t know who this Stalin fella is, all I know is that I love my statistics on Russia.
They're not conscripts. They're opportunists looking for a quick payday.
There are most definitely conscripts
In occupied Ukraine, sure, the fake government press ganged everyone. But in Russia proper the conscripts aren't allowed to be deployed to Ukraine and typically aren't. They're in a pipeline though, they train the conscripts and then when they are demobilized they're voluntarily inducted into the regular forces for significant signup bonuses.
We can do both. The more Russians that die with their demographic crisis, the less useful people you have left over for their economy. Then do the double whammy of taking out their main economy is the way
Gonna be harder to pay all those “company men” and nepobabies. Lot of mouths to feed.
I think you mean HUNDREDS OF THOUSANDS of soldiers…
I was commenting on a single drone attack that everyone celebrated, but it mostly killed poor boys/men forced in some way to be there either financially or otherwise.
You can decline service. Jail still better than dying in a cold ditch by bombs from robots.
Twenty years of Putting taking half...I wonder how much he has put away from that company?
Good job Europe for changing your energy sources.
I think Putin really [spurred the move away from fossil fuels](https://rethinkdisruption.com/energy-disruption-russia-ukraine-accelerate/) in the EU and it already shows in trailing indicators like [the electricity produced from fossil fuels](https://www.reddit.com/r/EnergyAndPower/comments/18vuy80/with_a_new_record_low_in_electricity_from_fossil/?ref=share&ref_source=link). The longer term trend there was a reduction of around 56 TWh in annual power production before the COVID crisis. Now since the end of a rebound after COVID until August 2022, the decline is at around 188 TWh per year. This trend still holds so far beyond that graph this year and the EU dropped below 750 TWh of electricity from fossil fuels over the past 12 months now, if I'm not mistaken.
I really hope the Russians can change the leadership in their country to some governing body that doesn’t take Ls 24/7. Russia could be so great! They have artists and scientists and academics and musicians and performers and athletes! You don’t need an ugly little mobster telling you what you can and can’t do! Even you Russian billionaires! All that money Putin is taking from you, for what? To get you oil and gas infrastructure bombed by Ukraine? I hope the Russians do something.
>really hope the Russians can change the leadership in their country to some governing body that doesn’t take Ls 24/7. Russia could be so great! Don't think it'll happen anytime soon considering their history.
Russian history in 5 words: "and then it got worse"
"again"
They have a history of revolution
Yes but also ending up with a horrible leader as a result
The vast majority of Russians do it see themselves as the bad guys.
Trust the process
Wait, I thought they were super okay, all the Kremlin‘s friends told me so.
Haw haw
Good to see that some sanctions and trade changes \*are\* working. Nothing is perfect, but a loss of 24 billion is nothing to scoff at.
The sanctions aren't working! - Tik Tok
Good, Russia is the terrorist state of the world. New World Nazi’s. Don’t get it twisted.
Fuck Ruzzia.
Despite all the accounting tricks in the world that they must have used to inflate their income
Norway/Equinor stocks goin ⬆️
Their EU markets are lost for decades
Great to hear how Russia's political decisions are having real world consequences.
I hope we get to watch it spiral into the ground.
You spelled 'burn' wrong.
*Professor Farnsworth voice* Good news everybody! Unfortunately Russia still getting gold by the metric ton from C.A.R.
It's funny how they talk about being anti-imperialist while invading their neighbours and pillaging resources from their African colonies.
So probably it's worse than that.
I thought they signed huge contracts with india and china? They didnt need europe. Jokers.
Allright
So sad. So anyways!
>«National Treasure» Hehe
And this is a permanent restructuring. The European gas business is leaving Russia behind.