Losses for the first time in 24 years were announced by the Russian state group Gazprom, due to reduced deliveries to Europe on the one hand and lower fuel prices on the other.

Gazprom Group reported losses of 629 billion rubles ($6.84 billion) for 2023, compared to net profits of 1.23 trillion. rubles in 2022.

Shares in the energy giant fell 4.4%, the most in more than a year, amid concerns about its dividend outlook. Gazprom’s largest shareholder is the Russian government, whose budget is under pressure from increased military spending and Western sanctions.

Gazprom’s net losses are the result of reduced natural gas flows to Europe – its largest market historically – as a result of Western retaliation for Russia’s invasion of Ukraine. Meanwhile, falling natural gas prices amid mild weather, sluggish demand and full inventories contributed to the losses.

Revenues from natural gas fell by 40%, to 4.88 trillion. rubles. Although Gazprom continues to send natural gas to some European countries, last year its flows to Europe fell to their lowest level since the early 1970s, according to International Energy Agency estimates.

Regarding Gazprom’s oil revenues, they increased by 6.7% to 3.88 trillion. rubles last year