The Gazprom group, which includes oil and energy companies, reported a loss of 629 billion rubles (USD 6.84 billion) last year.
That compares with net income of 1.23 trillion rubles in 2022, according to the earnings report released today.
The energy company's shares fell as much as 4.4 percent, the steepest decline in more than a year, amid market concerns about the prospects for dividend payments.
Gazprom's biggest shareholder is the Russian government, whose budget is under pressure amid rising military spending and Western sanctions.
The net loss is a consequence of the curtailment of gas flows to Europe - historically Gazprom's largest market - amid the Kremlin's retaliation for Western support for Ukraine after the Russian invasion in 2022.
At the same time, falling gas prices amid soft weather, sluggish demand, and overflowing inventories contributed to Gazprom's loss.
Gas revenues fell 40% to 4.88 trillion rubles, the report said. Although Gazprom continues to supply gas through pipelines to several European countries, its flows to Europe fell last year to the lowest level since the early 1970s.
This year, the Russian Federation expects pipeline gas supplies to external markets to increase by 18% to 108 bcm compared to 2023.
According to Bloomberg's experts, even if more supplies go to China, this cannot compensate for the loss of the European market. / BGNES
