Belgium, (Brussels Morning Newspaper) Russian Gazprom energy company reported record-high net profit in the first half of the year despite EU’s efforts to limit Russia’s income from fossil fuels.
The company reported net profit of more than 41 billion euro in the observed period, with the Kremlin to receive dividends after Gazprom decides on proposed payment at the end of September, according to The Guardian reporting on Wednesday.
Gazprom boasted record performance despite Western sanctions aimed at causing economic damage to Russia through sanctions focused on the country’s energy sector.
The European Commission previously asserted that sanctions would limit Russia’s income and make it more difficult for Moscow to continue waging war in Ukraine.
However, Russia took advantage of energy price hikes and redirected its fossil fuel exports to China and India, while the EU faces soaring energy prices.
Famil Sadygov, deputy CEO of Gazprom, noted that “despite sanctions pressure and unfavourable external environment, the Gazprom Group reported record [International Financial Reporting Standards] IFRS revenues and net profit in the first half of 2022, while reducing net debt and leverage to a minimum.”
Tensions still rising
Gazprom announced plans earlier this week to halt gas flow through Nord Stream 1 natural gas pipeline until Saturday to carry out repairs, with EU politicians and companies hoping gas flow will resume.
In recent months, the company limited gas export to the EU, which dropped to the lowest level since 2008. It halted gas flow for 10 days in July for maintenance, after which the pipeline resumed operation at roughly 20% of capacity.
Gazprom CEO Alexey Miller warned on Wednesday that German industry group Siemens was not able to perform maintenance of Nord Stream 1 equipment. In an interview with Russian news agency Interfax, he stressed that regular maintenance of the pipeline was not possible due to Western sanctions against Russia.
French power utility Engie warned earlier this week that Gazprom would further cut gas deliveries over disagreement on application of some agreements. Gazprom previously cut deliveries to Engie, which holds 9% of Nord Stream 1.
Gazprom announced on Wednesday that it would stop delivering natural gas to Engie from 1 September over missing payments. It stressed that Engie did not pay for July deliveries in full, with The Guardian noting that Engie deducted “compensation” for lower deliveries.
