The end of the gas empire: "Gazprom" sells off luxury real estate after record losses

"Gazprom" has begun selling off its luxury real estate following record losses, the first in 25 years. The company is trying to cover its huge debt by selling off assets, but the lost European market has made its position in the global market extremely unstable.

This was reported by the Russian media. In October 2023, Gazprom put up for sale several luxury real estate properties, including the Bogorodskoye Reception House hotel complex located in New Moscow, as well as the Marriott Tsakhkadzor five-star hotel in Armenia.

These properties were gems in the company's portfolio, but now they are forced to sell for hundreds of millions of rubles to cover the financial holes that have appeared due to the wrong policies and economic isolation. The Bogorodskoye Reception House hotel complex is a four-story building with an area of almost 13,000 square meters, with a wellness center, saunas, a fitness room, and a restaurant.

The price of this luxury complex is RUB 833.9 million. At the same time, the Marriott Tsaghkadzor Hotel, located in a famous ski resort in Armenia, costs 1.7 billion rubles. This hotel offers not only luxurious rooms, but also sports grounds, a spa, a swimming pool, and tennis courts. However, the price has been reduced, indicating that there is no demand for real estate and no confidence in Gazprom's financial stability.

Record losses: why Gazprom is on the verge of financial collapse

In 2023, Gazprom suffered a loss of 629 billion rubles, which was a record for the company. These losses were the result of a sharp drop in revenue (by 27%) and a halving of EBITDA. The gas business, which for decades has been the basis of the company's stability, has now become unprofitable by 1.2 trillion rubles, and Gazprom's total debt has reached 6.65 trillion rubles. This debt exceeded the size of the liquid part of Russia's National Welfare Fund, which is about 5 trillion rubles.

One of the main reasons for the financial collapse was the loss of the European market, which used to be the main source of profit for Gazprom. After the Kremlin decided to use gas as a weapon by cutting off supplies to most European countries, the company actually lost key customers with whom it had been cooperating for more than half a century. In 2023, Gazprom exported only 69 billion cubic meters of gas, the lowest level since 1985. Supplies to Europe dropped to 28 billion cubic meters, a level not seen since the 1970s.

What is Gazprom left with after losing Europe?

The Kremlin's strategy of putting pressure on Europe, which included cutting off gas supplies in response to international sanctions and support for Ukraine, has turned into a disaster for Gazprom. Instead of achieving concessions, Russia lost its largest market, ties with which had been built over decades. In addition, gas production in Russia has fallen to a minimum – in 2023, Gazprom produced only 404 billion cubic meters of gas, the lowest figure in the company's history.

This situation has forced the company to look for money to survive, and that is why Gazprom has started selling off its elite assets. In May 2023, the company had already put up for sale real estate in Moscow and the Moscow region, including office buildings and health resort complexes. But this was not enough, and so the management continued to sell other properties, trying to maintain at least some financial stability.

As OBOZ.UA reported earlier, sanctions and the loss of the European market made Russia's largest corporation Gazprom the most unprofitable company in 2023. This indicates the depth of the crisis in which the Russian gas production industry has found itself.

Only verified information is available on the OBOZ.UA Telegram channel and Viber. Do not fall for fakes!