Gazprom was one of the largest oil and gas companies worldwide in 2019. The company is one of the largest extractors of natural gas in the world and generates large revenues through this fossil fuel resource. Russia is one of the largest producers of natural gas in the world, along with the United States. It also holds some of the world’s largest natural gas reserves. The company owns a significant portion of Russia’s natural gas reserves.
Europe has been a significant importer of Gazprom’s natural gas products. Germany and the United Kingdom are Gazprom’s largest customer countries based on gas sales volume. Gazprom transports much of its products through pipelines, many that travel through Ukraine to various European countries. In Ukraine, gas disputes have arisen between Ukrainian company Naftohaz Ukrayiny and Gazprom due to natural gas supplies, prices, and debts. The dispute began in 2005 due to prices of natural gas as well as the cost of transport. Since then, the issue has flamed up repeatedly, aggravated further by the latest Russian-Ukrainian territorial conflict. In 2014, Gazprom reported a heavy decrease of sales and profits, which is likely due to the sanctions and the depreciation of the rubel implemented by the U.S. and the EU in the course of the Ukrainian conflict.