Gazprom is considering every way to cut costs, including its luxury hotel portfolio, after the group suffered for the second consecutive year of losses as the Russia-Ukraine conflict continued to affect energy exports.
Interfax, Reuters reported that the group's net loss according to the Russian Accounting Standards (RAS) has reached 12.89 billion USD in 2024, largely due to the decrease in share prices in the oil sector of Gazprom, Gazprom Neft.
Gazprom suffered its first loss in 24 years in 2023 as EU sanctions cost the group, with Russian gas exports to the EU down 55% from 2022.
An internal report from Gazprom released by the Financial Times last year shows that the group may not recover its pre-crisis export earnings until 2035 as it struggles to find an alternative to the bustling EU market.
Gazprom has begun to cut costs due to continuous losses, narrowing many years of shopping as the company enjoys huge energy revenue.
In January, Gazprom confirmed it was considering laying off administrative staff in the context of reports that the payroll could be reduced by 40%.
Last year, Gazprom said it was selling some luxury real estate assets, including a chain of Gazprom-owned hotels, which are used to reward employees with vacations and conferences.
Gazprom is considering selling a power-supply-style headquarters in St Petersburg, a direct result of reduced demand from the West, according to Reuters.
Gazprom Export has also reduced its staff from 600 before the Ukrainian conflict to a few dozen, according to Reuters.
Russia has sought to cover losses in key energy exports to Europe by increasing trade with China, India and other markets.
