Russian gas giant Gazprom eyes closure of EU, Japan offices in strategic restructure

On January 28, the Board of Directors of Russia's Gazprom will consider the liquidation of its representative offices in Brussels and Tokyo in a remote format, the company has announced.

The Brussels office was established in late 2011 and opened in 2013 amid the European Commission's antitrust investigation into the Russian energy giant, Caliber.Az reports via Russian media.

During the opening ceremony, Deputy Chairman of the Management Committee Alexander Medvedev remarked, “We are actively engaging in dialogue with EU institutions today, and the opening of Gazprom’s office in the EU capital will make this process more effective.”

Japan, the world’s second-largest consumer of liquefied natural gas (LNG) after China, saw Gazprom open its Tokyo representative office in 2014. However, by 2020, the company acknowledged that the office “does not carry out financial or business activities.”

Additionally, the board meeting will address the extension of a Management Committee member’s term, though no name has been specified.

Based on existing contract timelines, this may pertain to Deputy Chairman and Chief Accountant of Gazprom, Mikhail Rosseev.

To recall, Gazprom is also considering halving its central office workforce from 4,100 to 2,500 employees, according to a company spokesman. The move follows a review of administrative efficiency, with the payroll for its central administration exceeding RUB 50 billion (approximately $490 million).

The reduction aligns Gazprom’s structure more closely with that of Rosatom, Russia’s state nuclear corporation, whose management team comprises 1,246 personnel out of a total 350,000 workforce.

The decision comes as Russia faces mounting sanctions from the United States targeting its oil and gas sector. The US Treasury Department recently sanctioned Gazprom Neft, Surgutneftegas, and insurance providers Ingosstrakh and AlfaStrakhovanie. Gazprom Neft, in particular, has been given 45 days to divest from its stake in the Serbian oil company NIS.

Russia anticipates limited global market disruptions from its plant shutdowns but expects a significant hit to its national revenue due to these sanctions.

By Aghakazim Guliyev