Russia’s Gazprom reports record earnings in the midst of global gas crisis Gazprom

Russia’s state gas company has reported record earnings for the third quarter of the year after taking advantage of a global gas crisis that has ignited historic energy markets in Europe.

Gazprom, the world’s largest gas producer, said it expects even higher profits in the last months of the year as its customers in Europe prepare for a winter energy crisis and record high costs.

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

The Sadygov family, Gazprom’s deputy chairman of the management committee, said: “Given the current momentum, we expect even more impressive results in the fourth quarter.”

The Kremlin-backed company has in recent months been criticized for failing to increase gas exports to Europe despite record high market prices across the continent amid a global gas supply crunch.

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

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

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

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

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

Jonathan Gant, a senior campaign manager at Global Witness, said households have already had difficulty paying bills and are being “forced to make the harsh choice between heating and dining”.

He said: “Meanwhile, the biggest fossil fuel companies driving the climate crisis are in their pockets. All too often, people do not have much to say about the energy they use to heat their homes and prepare their meals, which exacerbates the injustice of the rise. in gas prices. “