Russia's Gazprom had record high revenues even before gas prices flared over Ukraine

European companies from Italy to Hungary have been quietly taking steps to prepare to comply with President Putin’s decree that gas must be paid for in local currency.

The producer benefited from a surge in gas prices as Europe, its largest export market, faced a severe energy deficit due to post-Covid recovery allied to stockpiles at multi-year lows.

Russia’s gas giant Gazprom reported its highest-ever annual income for 2021, well before prices soared in recent months over the war in Ukraine.       

The producer benefited from a surge in gas prices as Europe, its largest export market, faced a severe energy deficit due to post-Covid recovery allied to stockpiles at multi-year lows. While Gazprom met its delivery obligations, gas flows to the continent were capped as it prioritised re-stocking domestic inventories.