Gazprom is Russia’s leading company, but few enterprises have been as badly beaten during the global financial crisis. The Russian economy has recovered as the crisis has abated, but Gazprom may suffer from a profound structural crisis. It needs to downsize, cut waste and reform.
In May 2008, Gazprom’s market capitalization exceeded $350 billion, but it has dropped to $135 billion today. The Russian oil sector increased its production and exports last year, but gas exports fell by 11 percent and Gazprom’s production decreased by 16 percent because of low demand.
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