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Russia's energy giant Gazprom will lay off 1,500 employees at the Lakhta Center — 40% of its workforce there.
The cuts are due to the loss of the European market. The company also plans to sell the Gazprom Export building in St. Petersburg, where only a few dozen employees remain out of 600. In 2023, Gazprom recorded a net loss of of 629 billion rubles ($6.9 billion)1 billion — the first in 25 years.
It is good that the sanctions are working. It, of course, isn't good for the Russian individuals who are affected - but the Russian invasion of Ukraine isn't good for the Ukraine individuals either.
Management misjudged how resolute European capitals would be, according to one of the executives, who said the thinking inside the company was that Europe would quickly be back "begging" for Russian gas supplies to resume.
Despite the economic pain of higher energy costs, the EU has not rolled back sanctions.
"We proved to be wrong," the executive said.