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Gazprom slashes 2023 investments due to market situation change

"We have completed a great effort of balancing capital expenses," Famil Sadygov noted

MOSCOW, October 24. /TASS/. Gazprom has lowered the corporate investment program for 2023 from 2.3 trillion rubles ($24.5 bln) to 1.996 trillion rubles ($21.3 bln) because of the change in macroeconomic indicators and the market situation, the company said.

The financial plan for 2023 approved earlier by the Gazprom Board of Directors will provide for covering commitments without deficit and in full scope, the holding informed.

"We provided for the reduction of revenues from gas sales in the new budget version due to the decline in market prices of gas in the first half of 2023. However, this is appropriately recognized in our operating costs - the total effect from their optimization will be over one trillion rubles ($10.6 bln). Considering the change in the macroeconomic indicators and the market situation, the investment program was reduced by 334 bln rubles ($3.6 bln)," Deputy CEO of Gazprom Famil Sadygov said.

"We have completed a great effort of balancing capital expenses. I would like to note we continue consistent implementation of key projects. In particular, we are implementing comprehensive development of the Power of Siberia gas pipeline and its backbone fields, and expansion of the Yamal gas production center," the senior executive added.