Russia raises gas tariffs to highest level in 11 years to save energy giant Gazprom

The Russian government has implemented the highest gas tariff increase in 11 years to bolster Gazprom's budget after the energy giant experienced a record net loss last year.

Source: a decree issued by the Russian government

Details: The decree states that effective 1 July, regulated gas prices for all categories of consumers will rise by 11.2%.

It is noted, however, that at the same time, overall payments for housing and utilities services have risen by 9.8%, and distribution companies supplying electricity, water and gas have increased their tariffs for all categories of consumers by 9.1%.

This means that Russian citizens will be paying 20% more for gas over the next two years, and that gas prices will have increased by 34% since the beginning of Russia’s invasion of Ukraine.

Gas prices in Russia have never risen so rapidly in recent years.

The last surge in gas tariffs – 15% in one year – occurred in 2013.

However, a significant deterioration in Gazprom's finances has prompted the Russian authorities to increase the burden on consumers in 2024.

Background: 

• In 2027, Russia and China will open the Far Eastern pipeline route so that Beijing can receive more gas from Moscow.
• Russia's energy giant Gazprom has suffered its worst losses in 25 years, but the Kremlin is set to tax it even more.
• At the annual general meeting, Gazprom's shareholders decided not to declare or pay dividends for 2023, the holding company said in a statement.

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