Gazprom announces plans to sell holiday resorts in Russia after annual loss

Gazprom, the Russian energy giant, announced on Tuesday that it would be selling off several holiday resorts. This comes after its first annual loss for almost 25 years.

The Kremlin's company, which controls the largest gas reserves in the world, has suffered a net loss for 2023 of nearly $7 billion after its sales to Europe plummeted because of the rift between Russia and the West over Ukraine.

Gazprom announced on Tuesday that it has put up for sale 14 hotels and resorts, including the Marriott Tsaghkadzor Hotel in Armenia's Valley of Flowers.

It also announced in May the sale of several hotels in the Moscow area, including the Imperial Park Hotel & SPA, after its decision to move its head office to the Lakhta Centre Business Complex in St. Petersburg, in 2021.

Gazprom's losses will not be significantly offset by the sales. Vedomosti estimated the Imperial Hotel at up to $69.5 million.

Gazprom has begun preparing for the possibility of losing more market share in Europe as the deal with Ukraine to transit Russian gas into the European Union expires at the end this year. Ukraine has said repeatedly that it will not negotiate an extension of the deal with Moscow. (Reporting and editing by Andrew Osborn, Vladimir Soldatkin)

(source: Reuters)