Page 80 - bne IntelliNews Russia OUTLOOK 2025

ahead of the United States (19%) and second only to Algeria (21.6%).
EU countries paid €701.5mn for Russian LNG in September, up by 28% month on month and by 26% y/y. This is the highest amount since November 2023, when €719mn were spent on payment for supplies of Russian LNG. The main buyers were France (€366mn), Spain (€141.5mn) and the Netherlands (€93.6mn).
The EU in September also imported Russian pipeline gas worth €547.8mn in October, the highest level since June 2024. Among leading purchasers were Hungary (€231mn), Greece (€150mn) and Slovakia (€124mn).
In all, the EU paid €1.3bn for Russian gas in October, up 6% m/m and up 21% y/y. The share of gas supplies from Russia within the total volume of Europe’s gas imports from countries outside the Union stood at 21.2%, compared with 23.76% in September.
In January-October 2024, the EU paid over €6bn for Russian pipeline gas and €5.7bn for Russian LNG.
Russia’s Gazprom said to be planning mass layoffs
The Russian state gas giant Gazprom plans to cut the number of employees from 4,100 to 2,500, eliminating duplicate functions and excessive bureaucratic processes, the company said in January.
Gas prices in Europe reached annual highs in December due to a cold snap and a possible imminent cessation of Russian gas supplies via Ukraine. Europe will get through the current heating season using reserves, but the winter of 2025-2026 may be difficult, experts believe.
The cost of gas at the TTF hub has approached a 13-month high (around $530 per 1,000 cubic metres), Kommersant writes. The rise in prices is fuelled by expectations of reduced supplies and a colder winter compared to the past two seasons.
The current prices are still far from the record levels of 2022, but this may not be the limit: on January 1, 2025, at the height of the heating season, the transit of Russian gas through Ukraine is expected to cease. The only supply channel will be the Turkish Stream, through which only Southeastern Europe receives gas, but even this route may have problems due to sanctions against Gazprombank. In the coming months, the European market will balance with LNG and reserves in underground gas storage facilities. UGS are 85% full, which is 10% below last year's level, and the ability to attract LNG from Asia is limited by parity prices – a premium will have to be paid to attract supplies,
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