Russia’s Gazprom Group Reports First Net Loss in 23 Years

As crazy as it sounds but Gazprom was largely living off the value of assets that have been created in the Soviet Union. Developing those gas fields came at a price but this price was absorbed by Russia as a whole when the Soviet Union collapsed. Now they had assets at very, very low cost and could milk them. As long as the gas from the older fields was flowing, all was good. Gazprom did a lot of things but I suspect many of them are duds. It took money from the gusher and sprinkled it onto everything. But when the gusher depletes, the game is up. That’s what’s upon us. Russia’s old gas fields run dry. 

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