Gazprom to thrive despite hindrance as Asian demand for gas will soar: Putin


FE Team | Published: February 17, 2023 20:02:23 | Updated: February 18, 2023 18:54:09


Russia's President Vladimir Putin presiding over a meeting with members of the government via a video link at a residence outside Moscow on February 15 this year –Reuters file photo

Russia’s President Vladimir Putin on Friday lauded Russia's natural gas giant, vowing that Gazprom would thrive despite attempts by the West to cut its clout as demand for gas would rise in Asia.

Since Putin sent troops into Ukraine, the world's largest natural gas company has grappled with sharply lower gas sales to Europe as the West seeks to reduce dependence on Russian energy and reduce Russian budget revenues.

Gazprom, which holds about 15 per cent of global gas reserves and employs about 490,000 people, is one of Russia's most powerful companies - so powerful it was once known as a state within the state.

Putin said the whole of Russia was proud of Gazprom, which was founded as a stock company 30 years ago from the assets of the Soviet gas ministry as the Soviet Union crumbled, according to Reuters.

"Despite unfair – to put it bluntly – competition, direct attempts from the outside to hinder and restrain its developmet, Gazprom is moving forward, launching new projects," Putin told CEO Alexei Miller by video link.

"Over the previous 30 years, global gas consumption has almost doubled, and in the next 20 years, according to expert estimates, it will add at least another 20 per cent, and maybe more," Putin said.

Gazprom's gas exports to Europe, which used to be its key source of revenues, fell sharply last year to post Soviet-lowsamid political fallout from the conflict in Ukraine and as the major Nord Stream pipelines were damaged by mysterious blasts.

Putin did not mention Nord Stream or European exports, saying that future gas demand will be driven by Asia.

"In the so-called transition period, the demand will be enormous. Moreover, more than half of this increase will fall on the countries of the Asia-Pacific region, first of all, of course, on the People's Republic of China, bearing in mind the growth rates of its economy."

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