Gazprom Reports Worst Half-Year Results in History Amid Declining Demand

Russian energy giant Gazprom has reported its worst half-year results in history. In the first six months of this year, natural gas production fell by 13.1% to 209 billion cubic meters, while exports decreased by 12.9% to 88.5 billion cubic meters.

According to Russian analysts, Gazprom needs to reassess its development strategy and seek new customer markets. The company's half-year results were published in a report prepared by the Russian Ministry of Economic Development for the first half of this year.

Gazprom's production is expected to fall by 7.2% for the full year, reaching 414 billion cubic meters, its lowest result ever. Experts attribute the negative results to a poorly designed corporate strategy and a failure to account for declining demand in key markets.

Energy analyst Ilya Balakirev blames Gazprom's mistakes on its inability to forecast developments in Ukraine and the US shale gas boom, as well as its own misguided calculations.