Gazprom expects investment to fall by around 20 percent next year

Russian company Gazprom is planning investments of 1.57 trillion roubles (CZK 397 billion) for next year, around 20 percent less than the amount planned for this year. Reuters reported this today. Gazprom is the world's largest gas company and has a monopoly on pipeline gas exports in Russia.

The company said it would use the funds to finance priority projects, such as gas production on the Yamal Peninsula and in eastern Russia. It is also planning further development of the Power of Siberia pipeline to China and gas processing facilities.

The company said the investment plan would ensure that the budget does not fall into deficit. The plan still needs to be approved by the board of directors.

Gazprom, which lost most of its share of the European market after Russian troops invaded Ukraine in late February last year, is seeking to redirect its gas exports to China and Turkey. This, however, requires substantial financial investment in building gas transportation infrastructure.

After the war in Ukraine began, the European Union decided to reduce Russian gas imports as much as possible. An analysis by Global Witness, however, showed this summer that the EU imports much more Russian gas in liquefied form by sea as LNG than it did before the war in Ukraine.