Gazprom admitted it sells gas at a loss


Gazprom faces problems with implementation of the investment program for 2016 due to the fact that the profitability of exports almost equals to the supply to the domestic market, said its deputy chairman Valery Golubev.

As reported by TASS, Golubev said that the company is currently “more and more selling gas at a loss”, since Gazprom follows the guaranteed contracts. As a result, the profitability of gas export is “almost equal” to the profitability from sales on the domestic market.

At the same time, the profitability of gas supplies to Kamchatka and Sakhalin is higher than to the European market, the official said. As a result, Gazprom has difficulties with implementing the investment program that was approved earlier this year.

Earlier it was reported that the amount of Gazprom investments in 2016 will amount to more than 1.5 trillion rubles (approx. $23 billion – RRT). In the first three months of 2016 Gazprom revenues from gas exports dropped by almost one third.