Gazprom sells hotels and resorts

V.R.
English Section / 16 octombrie

Gazprom sells hotels and resorts

Versiunea în limba română

The Russian natural gas giant Gazprom, which recorded losses of almost seven billion dollars in 2023, announced yesterday that it intends to sell some tourist complexes, according to Reuters.

The Kremlin-controlled company, which sits on the world's largest gas reserves, posted its first annual loss in nearly a quarter of a century after its sales to lucrative European markets fell sharply following Russia's invasion of Ukraine.

Yesterday, Gazprom announced that it has put 14 hotels and resorts up for sale, including Marriott Tsaghkadzor, located in the "Valley of Flowers" in Armenia.

Also in May, the company announced the sale of some hotels, including the Imperial Park Hotel & SPA in the Moscow region, following the decision to relocate its headquarters from Moscow to the Lakhta business center in St. Petersburg in 2021.

It is unlikely that the mentioned sales will significantly compensate for Gazprom's losses. The Russian publication Vedomosti valued the Imperial Hotel at approximately 69.5 million dollars.

Gazprom expects a potential loss of several gas markets in Europe, after the agreement with Ukraine for the transit of Russian gas to the European Union is due to expire at the end of the year. Ukraine has repeatedly announced that it is not willing to negotiate an enlargement agreement with Moscow.

We remind you that, in September, President Vladimir Putin declared that Russia intends to continue delivering natural gas to the European Union via Ukraine, but Moscow cannot force Kiev to comply with the transit agreement that expires at the end of 2024. Putin said: "In as for Ukraine, even if it seems strange, we are not abandoning this transit. Why? Because we, and Gazprom, intend to honor our obligations to our customers with whom we have long-term contracts. There is a transit agreement that expires on December 31, but if Ukraine refuses transit, we cannot force it."

The Russian president also stated that Gazprom's main clients in Europe do not seem to want the transit agreement concluded, even if they have provided military assistance to Ukraine.

The Urengoy - Pomary - Uzhgorod gas pipeline, built during the Soviet era, transports natural gas from western Siberia to Europe via the Sudzha point in the Kursk region of Russia. From there it enters the territory of Ukraine, in the direction of Slovakia. On the territory of Slovakia, the gas pipeline divides into two branches: one to the Czech Republic, the other to Austria. The main buyers of Russian natural gas are: Hungary, Slovakia and Austria.

If Ukraine refuses to allow the transit of Russian gas through its territory, Russia could use the TurkStream pipeline, located on the bottom of the Black Sea, to supply Europe.

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