Russia's Gazprom is set to produce 414 billion cubic meters (bcm) of natural gas in 2015, a historical low for the company, according to a report released by the Russia's economy ministry.
The Economic Development Ministry said the state-owned energy giant had produced 444 bcm last year, but it fell to an all-time low despite initial plans for higher production due to a slowing down in demand and lower investment.
Gazprom, the world's biggest natural gas producer, had expected to increase its production to 485 bcm but reduced its production expectation to 450 bcm in May this year, according to Interfax news agency.
Russia is struggling economically due to Western sanctions over the Ukraine conflict combined with low oil prices. Oil and gas revenues make up almost half of the federal budget and some 15 percent of the country's GDP. The economy contracted by 4.2 percent in June year-on-year, while its national currency, the ruble, has seen a four month low on Monday.
The ministry also said Gazprom's gas exports to the EU and Turkey plummeted by 6.2 percent to 66.8 bcm in the first half of the year. The EU opened an anti-trust law case against the company in April accusing the company of monopolizing the gas market in Europe.
Meanwhile, Russia and Turkey are still negotiating to reach an agreement over a gas pipeline that will potentially carry Russian gas to Europe through Turkey and Greece.
By Furkan Naci Top
Anadolu Agency
furkan.top@aa.com.tr