Russian gas giant Gazprom, facing a $7 billion annual loss and decreased European gas revenue due to the Ukraine conflict, is shifting focus to its oil business. Gazprom Neft, its oil arm, has performed well. Despite Western sanctions, Russian oil exports to India and China have remained profitable. The Pacific port of Kozmino is a key outlet, with oil loadings jumping significantly.
EOA’s Main Takeaway
Propaganda is inserted in this news item to disguise the lack of success of President Biden’s sanctions:
1- Gazprom Neft was working on these projects long before the Russian invasion of Ukraine.
2- Gazprom losses, as we explained in a previous report, are related to the increase of government taxes, not to sales nor prices.
Reuters ignored the fact that taxes on Gazprom increased significantly and what the government collected from the company was three-fold the amount of the loss. In other words, despite all the problems, the government continued milking the cow and ate its food, too. The milk was there for the calves and the food was there for the cow, but the rancher took them.
So what will happen to the Gasprom stocks “held” in us brokerage accounts?!
I do not know