The aggressor country of russia has raised domestic gas prices by 11.2% since July 1, which is almost certainly aimed at increasing revenues from the russian domestic market in response to the loss of the European market.
This is stated in the intelligence review of the British Ministry of Defense.
The increase in prices was the result of sanctions against russia for its invasion of Ukraine, as well as a deliberate reduction in gas supplies to Europe in response, the intelligence added.
In 2023, Gazprom's net annual loss was approximately USD 6.9 billion, the largest annual loss in the past 25 years.
The review says that inflation in russia is likely to remain above the Central Bank of russia's target of 4% in the second half of 2024. This is partly due to the increase in domestic gas prices and other household expenses, as well as to the increase in government spending, which is mainly due to the invasion of Ukraine.
"Gas prices for russian households are estimated to have risen 34% since the invasion began, despite russia being the world's second-largest producer of natural gas in 2023. They will rise another 8.2% in 2025, almost certainly will increase inflationary pressure in the russian economy and weaken the purchasing power of ordinary russians," the intelligence agency notes.
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