Foreign media reported the news in early May, while local Russian media remained quiet about the impact of Western and European sanctions on Russia’s state-run gas corporation Gazprom. The reports revealed that Gazprom faced a net loss of 629 billion rubles ($6.9 billion) in 2023, its first annual loss in over 20 years.
Sales to Europe declined following Russia’s military operation in Ukraine, leading to severe sanctions against Russia. Gazprom had previously signed agreements with African countries to collaborate on various sectors, including energy and infrastructure.
However, the recent financial losses could have negative implications for Russia-Africa economic cooperation. Russian companies, including Gazprom, have shown interest in energy and industrial projects in African countries to address electricity shortages and promote economic development. The chairman of the Russia-Sudan Business Council emphasized the need for investments in oil and gas projects in Africa, highlighting opportunities for collaboration with Russian companies.
Gazprom’s experience in liquefied natural gas and gas pipeline projects was seen as valuable for African partners. The potential beneficiary countries included Algeria, Angola, Ghana, Egypt, and others. African Energy Chamber’s chairman stressed the importance of natural gas in addressing energy challenges in Africa and fostering economic growth. Gazprom’s unique experience and technological expertise could contribute to economic development and improve people’s lives in African countries.
Despite the commitment to economic partnership, Gazprom’s financial situation might lead to delays in potential projects in Africa. Russian officials did not confirm whether Russia would continue agreements with African countries amidst Gazprom’s financial difficulties. African leaders expressed concerns about the impact of Gazprom’s losses on potential projects.
The uncertainty surrounding Gazprom’s financial status could temporarily halt projects in Africa until the situation improves.
