The net profits of the Russian company Gazprom fell more than 40 percent after the sanctions for the invasion of Ukraine

Model of gas pipeline pipes in front of the Gazprom logo (Reuters) (DADO RUVIC /)

Gazprom announced on Tuesday a 41.4% drop in its net profit in 2022at the end of a year marked by the sharp drop in Russian exports of gas because of the sanctions linked to the conflict in Ukraine.

The net earnings of the Russian gas giant they went from 2,093 trillion rubles (26,000 million dollars) in 2021 to 1,226 trillion (15,000 million dollars) last year, according to an annual report published on Tuesday, cited by Russian news agencies.

Gazprom’s net profit, according to the report, fell due to a tax increase in the second half of the year. In addition, the company announced that it will not pay dividends for the year either.

The West last year introduced a series of sanctions against Russia and state companies for Moscow’s actions in Ukraine. Gazprom’s gas exports, a key source of the company’s revenue, have not been directly sanctioned, but export volumes nearly halved last year to 101 billion cubic meters.

The Gazprom logo on the facade of a business center in Saint Petersburg (Reuters)
The Gazprom logo on the facade of a business center in St. Petersburg (Reuters) (REUTERS /)

The Gazprom shares fell about 4% after the Kremlin-controlled company said its council had decided not pay a dividend for the year after allocating a semi-annual dividend of 1.2 trillion rubles ($15 billion).

Famil Sadygov, Gazprom’s deputy chief executive, stated that since the semi-annual dividend payment had already exceeded the target level of 50% of net profit, it had been decided to leave the dividend for the year on a par with the preliminary payment.

“We have not waited for the results of the year, but we have given shareholders the opportunity to receive such an important amount in advance. Due to this, the dividend received has a higher real value than the payment of the same amount at the end of the year”, he said.

Sadygov also noted that earnings before interest, taxes, depreciation and amortization reached 3.6 trillion rubles last year, on par with 2021.

(With information from Reuters and EFE)

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