Gazprom to Cut Spending in 2020

Gazprom’s management committee has backed a rubles 1.11 trillion ($18bn) investment plan for next year, the Russian gas supplier said on December 13, down from a projected rubles 1.32 trillion in spending this year.

The gas exporter recently launched its $55bn Power of Siberia gas pipeline to China, and its Nord Stream 2 and TurkStream projects are also nearing completion, lowering its capital requirements.

The 2020 investment programme, which will need approval from Gazprom’s board of directors, includes rubles 933bn for capital investments, rubles 90bn for acquisitions and rubles 81.3bn for long-term financial investments. The company said it intends to borrow rubles 558bn during the year.

Gapzrom's capital expenditure will fall for the second year in a row if management's plan is realised. Spending climbed from rubles 1.34 trillion in 2016 to rubles 1.41 trillion in 2017 and a record rubles 1.8 trillion last year.