Russia’s Gazprom’s gas production has declined since January and exports are down 43%

Gazprom, the largest gas producer in Russia said on Tuesday that its gas production and exports continued to decline, as production fell by 19.2% and exports by 43.4% between Jan. 1 and Nov. 15.

Gazprom’s exports, and hence its output, fell after the company cut or stopped supplies to some of its biggest customers, who refused to switch to rubles as President Vladimir Putin had requested in response to Western sanctions in March.

In addition, the Nord Stream pipelines linking Russia and Germany were damaged in September, cutting off another supply route to Europe and cutting Moscow’s share of gas export revenues.

Gazprom said on Tuesday it produced 359.7 billion cubic meters of gas between January 1 and November 15, in decline of 19.2% year on year. Its exports outside the former Soviet Union amounted to 93.2 billion cubic meters, in decrease of 43.4% compared to the previous year.

At home, Gazprom recorded a 5.9% drop in demand, which “may indirectly indicate an exacerbation of stagnation” in the industrial sector, according to Yevgeny Suvorov, an economist at Centro Credit Bank.

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