And it's daily revenues have gone down
So their revenues ARE down. And India and China are driving hard bargain prices
Russia’s full-scale invasion of Ukraine and subsequent energy blackmailing of its primary market, the EU, has meant Russia has lost its main markets for gas. As a result, Gazprom, Russia’s state-controlled monopoly, is facing significant financial challenges. Last year, Gazprom reported a staggering 629 billion rubles (USD 6.9 bn) loss — its largest in over a quarter century. The roots of this setback can be traced directly to a sharp decline in gas sales to Europe, which has successfully diversified its energy sources away from Russian gas. With the European market currently inaccessible, securing the Chinese market through the Power of Siberia-2 pipeline has become critical for Gazprom. This will help mitigate losses and also stabilise finances. However, this strategy faces significant obstacles. In May, China requested that Gazprom sell gas at the same subsidised prices it offers to its domestic market. Additionally, China plans to purchase only a small portion of its natural gas needs through the Power of Siberia-2 pipeline. This puts Russia, and particularly Gazprom, in a challenging position. Even if the expansion into the Chinese market proceeds and the Power of Siberia-2 pipeline is built, profits could be minimal and would make it difficult to compensate for the losses suffered by losing the EU market.
EU countries still buy a lot of Russian gas and that is going to remain until the nuclear power plants and imports from Norway etc. step up
and if we look at who bought the fuels from Russia in the EU
The EU has granted an exemption for Russian crude oil imported through the southern branch of the Druzhba pipeline to Hungary, Slovakia, and the Czech Republic. Russian pipeline gas and LNG remain unsanctioned. Russia is reliant on EU ports logistically to transship its LNG and re-export to other countries. The EU is discussing a ban on transshipment of Russian LNG to third countries, which could be included in the Union’s 14th sanctions package.
The top five largest Russian fossil fuel importing countries in the EU paid Russia a total of EUR 1.1 billion in May. Member States can continue buying Russian fossil fuels due to exemptions in the sanctions.
Hungary was the largest importer of Russian fossil fuels within the EU in May, importing fossil fuels worth EUR 294 mn. Their imports comprised crude oil and gas, delivered via pipelines, valued at EUR 172 mn and EUR 122 mn, respectively.
Slovakia was the EU’s second-largest importer of Russian fossil fuels in May, purchasing fossil fuels worth EUR 269 mn. Imports included crude oil via pipeline valued at EUR 152 mn and pipeline gas valued at EUR 117 mn.
In May, the Czech Republic was the third largest importer in the EU, importing EUR 234 mn of Russian fossil fuels. Most of their imports (65% valued at 153 mn) comprised crude oil received via pipeline.
France and Belgium rounded off the top five LNG importers, with Russian LNG imports valued at EUR 196 million and EUR 178 million, respectively. Despite an 18% month-on-month decline in France’s total LNG imports in May, imports from Russia increased by 14%, accounting for 41% of the total volume. In contrast, Belgium’s total LNG imports rose 11% month-on-month, with imports from Russia increasing by 15% and comprising 66% of Belgium’s total LNG imports. All the LNG imported by these two countries originated in Yamal, with one transshipment operation occurring at the Montoir-de-Bretagne LNG facility and three transshipment operations occurring in Zeebrugge in May.
Russia remains highly reliant on the European and G7 shipping industry
