Gazprom

Gazprom is a Russian state-controlled, vertically integrated energy company headquartered at the Lakhta Center in Saint Petersburg. Its name is derived from the Russian phrase for “gas industry.” The group’s core activities cover exploration and production of natural gas, gas condensate and oil; processing and refining; pipeline transportation; wholesale and retail marketing; liquefied natural gas and gas-related infrastructure; and electricity generation. Through subsidiaries and affiliated companies, it has also operated in finance, media, aviation, construction and other industrial fields. The company was created in 1989 when the Soviet Ministry of Gas Industry was reorganized as the State Gas Concern Gazprom. It was the Soviet Union’s first state-run corporate enterprise. After the dissolution of the Soviet Union, Gazprom retained most of the gas assets located in Russia and became the dominant operator of the Russian gas system. It was converted into a joint-stock company in the early 1990s and partially privatized, although the state later restored effective control. The company’s strategic importance derives from its combination of large reserves, production assets, long-distance pipelines and a central role in Russia’s domestic gas supply and exports. Gazprom’s upstream portfolio has historically been concentrated in Western Siberia, particularly the Yamal-Nenets region. Major fields have included Urengoy, Yamburg and Medvezhe, while newer developments and infrastructure have been used to offset decline in mature fields. The group also owns Gazprom Neft, an oil producer with crude-oil, refining and petroleum-product operations. Gas transportation has been a defining part of the brand: Gazprom builds and operates extensive Russian and international pipeline systems, including Power of Siberia and TurkStream. It has also participated in Nord Stream-related projects and other proposed or completed export corridors. For decades, Gazprom was one of the principal suppliers of pipeline gas to European markets. Its commercial relationships with European utilities and governments were closely connected to Russian foreign policy and broader debates about energy security, market concentration and dependence on Russian supply. Projects such as Nord Stream 2 generated significant political and regulatory controversy. The company’s position changed sharply after Russia’s full-scale invasion of Ukraine in 2022, when pipeline deliveries to much of Europe fell, several European buyers faced supply interruptions, and Gazprom became subject to sanctions, arbitration claims and contract disputes. Its export exposure to Europe contracted substantially, while Russia sought to redirect gas toward China and other markets. Gazprom remains a major Russian corporate institution and a strategic instrument of state policy, but its financial and market position is more exposed than before to declining European demand, infrastructure constraints, sanctions, pricing pressure and the cost of developing alternative export routes. In 2023, reported revenue was approximately 8.5 trillion Russian rubles, down from 11.7 trillion rubles in 2022, according to the cited reference material. The group also has a substantial environmental footprint: the cited reference states that Gazprom was responsible for approximately 1,065 million tonnes of carbon-dioxide emissions in 2024.

The Soviet gas industry was centralized under the Ministry of Gas Industry in 1965. During the 1970s and 1980s, Soviet exploration established large reserves in Siberia, the Urals and the Volga region. In August 1989, the ministry was reorganized as the State Gas Concern Gazprom under Viktor Chernomyrdin. Following the Soviet Union’s collapse, gas assets in the newly independent republics were transferred to national companies, while Gazprom retained the Russian assets and the dominant position in Russia’s gas sector. Gazprom became a joint-stock company in 1993 and distributed shares through Russia’s voucher-privatization process. The state initially retained a large stake, but ownership and trading were subject to restrictions. During the 1990s, the company became associated with weak state oversight, tax disputes, insider influence and allegations that assets were transferred to connected parties. Viktor Chernomyrdin’s appointment as Russian prime minister increased the company’s political significance. Rem Vyakhirev succeeded him in the company’s senior leadership. After Vladimir Putin became president, the government moved to reassert control over strategic enterprises. In the early 2000s, Alexei Miller replaced Vyakhirev as chief executive, while Dmitry Medvedev became chairman of the board. The new leadership pursued recovery of assets and tighter state supervision. In 2005, state-owned Rosneftegaz acquired a major block of Gazprom shares, restoring effective state control and removing restrictions on foreign ownership. Gazprom also acquired Sibneft, later renamed Gazprom Neft, greatly expanding its oil business. The Russian state strengthened Gazprom’s export position through the 2006 gas-export law, which gave the company the exclusive right to export pipeline natural gas from Russia. During the same period, Gazprom expanded its international infrastructure and commercial partnerships. It acquired a controlling interest in Sakhalin Energy, pursued projects with European and Turkish partners, and participated in South Stream and Nord Stream initiatives. Gazprom also expanded beyond energy, including through the acquisition of NTV in 2001 and later media and film assets. The 2009 Russia–Ukraine gas dispute highlighted the company’s role in interstate relations and the vulnerability of European customers to pipeline interruptions. The Power of Siberia agreement with China in 2014 created a major alternative outlet, and deliveries through that route began in December 2019. Nord Stream 2 was contracted in 2015 and completed in 2021, but it was not placed into normal operation after the deterioration of Russia’s relations with Europe. Russia’s full-scale invasion of Ukraine in February 2022 transformed Gazprom’s external market. Pipeline deliveries to Europe fell from approximately 185 billion cubic metres in 2021 to about 100 billion in 2022 and lower levels in 2023, according to the cited reference. European governments diversified supply through liquefied natural gas, alternative pipelines, demand reduction and renewable energy. Gazprom faced sanctions, arbitration and compensation claims linked to interrupted deliveries. The company therefore entered a period of lower European revenue, greater dependence on domestic demand and a strategic effort to develop Chinese and other Asian markets.

1. 2022European export disruption

   The invasion of Ukraine and subsequent supply reductions caused a major contraction in Gazprom’s European business.

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2. 2019Power of Siberia deliveries began

   Gazprom began supplying China through the Power of Siberia pipeline.

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3. 2014China gas agreement signed

   Gazprom and CNPC signed a reported $400 billion, 30-year gas supply agreement.

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4. 2006Russian gas-export monopoly formalized

   Russia’s gas-export law granted Gazprom the exclusive right to export natural gas from Russia.

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5. 2005State control restored

   Rosneftegaz acquired a large shareholding, giving the Russian government effective control of the company.

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6. 2005Acquisition of Sibneft

   Gazprom acquired a controlling stake in Sibneft, which was subsequently renamed Gazprom Neft.

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7. 2001Alexei Miller became chief executive

   A new leadership period began as the Russian government sought stronger control over Gazprom and recovery of assets.

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8. 1993Conversion into a joint-stock company

   Gazprom was incorporated as a joint-stock company during Russia’s post-Soviet privatization process.

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9. 1989Gazprom created from the Soviet Ministry of Gas Industry

   The ministry was reorganized as the State Gas Concern Gazprom, creating the predecessor of the modern group.

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A state-backed, vertically integrated Russian energy champion and strategic gas infrastructure operator.

• Natural gasUpstream production and wholesale supply1989

  Gazprom’s principal product is natural gas produced from large Russian fields, especially in Western Siberia and the Yamal-Nenets region. The group sells gas domestically and has historically exported it through pipeline systems and, to a lesser extent, LNG-related activities.

• Pipeline transportationEnergy infrastructure1989

  Gazprom owns or operates extensive gas transportation infrastructure in Russia and participates in cross-border systems. Major routes associated with the group include Power of Siberia and TurkStream, while Nord Stream projects were central to its former European export strategy.

• Gazprom Neft oil and petroleum productsOil and refining2005

  Gazprom Neft is the group’s principal oil business. It produces crude oil, processes hydrocarbons and markets refined petroleum products. The business was created through Gazprom’s acquisition and renaming of Sibneft.

• Electricity generationPower generation

  Gazprom operates power-generation businesses using gas and other energy resources, complementing its upstream, transportation and fuel-marketing activities.

• 2006Dreams Come True

  Russia · International

  Gazprom used “Dreams Come True” as a corporate slogan during a period of rapid expansion, emphasizing aspiration, scale and the company’s role as a national champion.

  Outcome. Became a widely recognized corporate slogan.

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• 2022Redirect gas strategy toward domestic and Asian marketsStrategy

  Sanctions, infrastructure damage, political conflict and customer diversification sharply reduced Gazprom’s European export market after Russia’s invasion of Ukraine.

  What changed. Gazprom reduced or halted deliveries to numerous European customers while emphasizing domestic supply, China-bound infrastructure and alternative export destinations.

  Aftermath. European pipeline exports contracted substantially, and the company faced lower revenue, arbitration claims and pressure to develop new routes and markets.

  Gazprom revenue. 11.7 trillion Russian rubles → 8.5 trillion Russian rubles (2022 to 2023)

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• 2014Sign the Power of Siberia supply frameworkOther

  Gazprom sought to develop China as a major long-term market and reduce dependence on European demand.

  What changed. Gazprom and CNPC signed a reported 30-year agreement for annual deliveries of 38 billion cubic metres of gas.

  Aftermath. The agreement supported construction of the Power of Siberia route, with deliveries beginning in 2019.

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• 2006Secure exclusive Russian gas-export rightsStrategy

  The Russian government sought to consolidate control over strategic gas exports and international pipeline sales.

  What changed. The State Duma passed the Gas Export Law, granting Gazprom the exclusive right to export natural gas from Russia.

  Aftermath. Gazprom’s role as Russia’s principal gas-export vehicle was reinforced, while European regulators and customers continued to debate competition and supply dependence.

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• 2001NTV takeover controversyControversy

  Gazprom acquired NTV from Media-Most after the broadcaster had become critical of the Putin government. The transaction was widely viewed in the reference material as part of the reassertion of state influence over national media.

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• 19901990s asset-stripping and governance controversiesControversy

  Reference material describes allegations that Gazprom managers and politically connected figures diverted or transferred company assets during the post-Soviet privatization period, alongside tax and regulatory avoidance concerns.

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• 2025Gazprom announced plans to produce home appliances

  The company announced an expansion into home-appliance production as it sought additional domestic business lines.

  Other
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• 2025Gazprom and CNPC discussed future Russian gas supplies to China

  Gazprom and China National Petroleum Corporation discussed future gas-supply cooperation as Russia sought to deepen energy ties with China and diversify export destinations.

  Other
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• 2025Gazprom’s first-half profit declined year on year

  Reuters reported that Gazprom’s first-half 2025 net income fell year on year, citing the company’s reported results and changes in currency and commodity-market conditions.

  Other
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• 2023Gazprom reported a major revenue decline in 2023

  Reference material reports revenue of about 8.5 trillion rubles in 2023, compared with 11.7 trillion rubles in 2022.

  Other
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• 2022Gazprom’s European gas exports declined after the invasion of Ukraine

  Russian supply reductions and the European response sharply reduced Gazprom’s pipeline exports to Europe and intensified sanctions and contract disputes.

  RegulationLawsuit
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• 2022Gazprom delisted its depositary receipts

  Gazprom’s depositary receipts were subject to delisting and termination procedures amid Russian capital-market restrictions and the wider sanctions environment following the invasion of Ukraine.

  RegulationOther
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• 2021Gazprom approved its 2022 investment program

  The company’s board approved the investment program for 2022, reflecting continuing capital allocation to its energy infrastructure and operating businesses.

  Other
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• 2014Gazprom and CNPC signed a long-term China gas agreement

  The companies agreed on a reported 30-year arrangement for Gazprom to supply China with 38 billion cubic metres of gas annually.

  Other
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• 2012European Commission opened an antitrust investigation into Gazprom

  The European Commission investigated concerns that Gazprom had abused a dominant position in upstream gas supply markets in Central and Eastern Europe.

  Regulation
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1. Gazprom
2. Gazprom official website
3. Gazprom and CNPC discussed future Russian gas supplies to China
4. Gazprom’s first-half profit declined year on year
5. Gazprom delisted its depositary receipts