Russian Company Gazprom Reports Record Profits Amid Global Gas Crisis

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The Russian state gas company reported record profits for the third quarter of the year after taking advantage of a global gas crisis that triggered historic highs in the energy market across Europe.

Gazprom, the world’s largest gas producer, said it expects even higher profits for the final months of the year as its European customers brace for a winter energy crisis and record costs .

Its better-than-expected financial results included net income of 581.8 billion rubles (£ 5.86 billion) from July to September compared to a net loss a year ago after the average price of gas earned from buyers in Europe increased to $ 313.40 per 1,000 cubic meters from $ 117.2 in 2020.

Famil Sadygov, vice chairman of the management board of Gazprom, said: “Given the current momentum, we expect even more impressive results in the fourth quarter.

The Kremlin-backed company has come under heavy criticism in recent months for failing to increase its gas exports to Europe, despite record market prices across the continent due to a global gas crisis. supply.

Europe’s largest gas supplier exported around a fifth less gas than in previous years, leading critics to suggest the company may be trying to manipulate the market by keeping prices high or winning. in political influence in its plan to build the Nord Stream 2, a gas pipeline project to Germany.

The company said it has fulfilled all of its contractual obligations to customers in Europe.

Record gas prices have already forced some factories to close to avoid the financial toll, and households and businesses are expected to face record high bills and even blackouts if winter temperatures are colder than expected.

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Meanwhile, rising oil prices have inflated prices at the pump for motorists and may contribute to further inflation in the economy.

Global Witness, a human rights campaign group, has claimed that the world’s largest oil and gas companies have enjoyed a 24% increase in profits over pre-pandemic levels, for a total of $ 65 billion, due to the energy crisis, which could force thousands of citizens into poverty.

Jonathan Gant, a senior activist for Global Witness, said households are already struggling to pay their bills and are “forced to make the difficult choice between heating and eating”.

He said: “Meanwhile, the biggest fossil fuel companies that are driving the climate crisis are lining their pockets. Too often, people have little say in the energy they use to heat their homes and cook their meals, compounding the injustice of rising gas prices.


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