Gazprom, the state-owned Russian energy company, has reported a nearly 6% decline in net profit year-on-year to Rbs983.1bn ($12.2bn) for the first half of 2025.

The decrease has been attributed to a stronger rouble and weaker oil prices, according to a Reuters report.

The company's revenue also declined to Rbs4.99trn.

This financial update follows Gazprom's significant loss of approximately $7bn in 2023, its first annual loss since 1999, which was largely due to a substantial decline in sales to Europe.

Currently, Russian gas comprises only 18% of European imports, a stark reduction from 45% in 2021.

Similarly, the region's oil imports from Russia have dwindled to 3% from approximately 30% during the same period.

The EU has set a target to eliminate Russian energy imports by 2027.

In response to the changing market dynamics, Gazprom is actively seeking to enhance its gas supply to alternative markets, with a particular focus on China.

However, negotiations regarding a new pipeline to China have encountered several obstacles including pricing disputes, the report said.

An "important" agreement is expected to be signed between Gazprom and the Chinese corporation CNPC next week.

This coincides with President Vladimir Putin's upcoming visit to China, as confirmed by Kremlin foreign policy aide Yuri Ushakov.

In a separate development, Polish refiner ORLEN may face a financial setback of nearly $300m (1.09bn zlotys) due to an arbitration tribunal's decision that upheld Gazprom's right to impose higher retroactive prices for gas supplies.

This ruling is part of ongoing legal disputes over the prices Poland paid for Russian gas from 2017 to 2022.