Despite facing Western sanctions that have forced it to find new buyers and reorient export flows, Russian energy giant Gazprom remains strong and stable, according to CEO Aleksey Miller. In an interview with Russia 1 TV, Miller expressed “absolute confidence” in the company’s future and emphasized that Gazprom is fulfilling all of its obligations.
Miller stated that Gazprom has been able to maintain its economic strength, supplying additional gas volumes to its foreign partners. The company plans to further boost its exports to China and Hungary. In particular, Gazprom expects to deliver an extra 600 million cubic meters of gas to China this year, in addition to the 22 billion cubic meters agreed under existing contracts.
Due to sanctions related to the Ukraine conflict and the sabotage of the Nord Stream pipelines, Gazprom’s gas exports to its traditional markets in the European Union have decreased. However, the company has successfully reoriented its energy trade to Asia, with China emerging as one of its largest buyers. Gazprom announced that its gas route to China, the Power of Siberia pipeline, will reach full capacity of 38 billion cubic meters per year within a few months. This development will effectively replace the EU as China’s main source of Russian gas.
In addition to China, Gazprom has also secured a deal to supply extra volumes to Hungary. Despite pressure from the EU, Hungary has remained a loyal customer of Russian gas. Miller revealed that significant additional volumes of supplies, totaling 1.3 billion cubic meters, will flow to the Hungarian market this year. This commitment from Hungary comes even after neighboring Bulgaria raised transit fees.
Gazprom’s ability to adapt to changing market conditions and find new buyers demonstrates its resilience in the face of Western sanctions. Miller’s comments reaffirm the company’s confidence in its future prospects and its commitment to fulfilling its obligations to its partners.
In conclusion, despite the challenges posed by Western sanctions, Gazprom remains strong and stable. The company’s strategy to reorient its export flows and find new buyers has been successful, with China and Hungary becoming key markets. Gazprom’s ability to deliver additional gas volumes to its foreign partners reflects its economic strength. As it continues to adapt to the changing energy landscape, Gazprom is well-positioned to maintain its position as a global energy giant.