High natural gas prices have put Gazprom on track for sky-high profits this year, and the state-run energy giant may use the extra cash to better insulate itself from western sanctions.
The price of natural gas has gone up this year due to Moscow's choke off of supplies to Europe.
It has already surpassed last year's $29 billion in profits in the first half of this year. It is estimated that it has made more than $70 billion from gas sales this year.
According to a recent research note, high gas prices have given the company financial flexibility.
"On conservative estimates, Gazprom has generated more revenue from gas sales in 2022 than in the entire of 2021, which was the most profitable for the group in recent years."
The energy giant could be more resistant to Western sanctions if it reinvested the profits to reduce its foreign debt.
Changes to contracts for dollar-denominated bonds were requested by the finance arm of the company in order to buy back its non-ruble debt.
Singh's team said thatGazprom is looking at buying back its eurobond curve. Russian capital controls and European sanctions have caused it to seek consent on a number of its bonds, which would allow it to buy back directly.
Since the beginning of the year, the West has cut off financial and energy markets to Russia.
In order to reduce its vulnerability to further US or European sanctions against Russia, Gazprom would have to buy its debt from non- Russian bondholders.
Should EU gas exports be cut completely, the analysts said, it would appear that Gazprom would be insulated from the lost revenue.
If the EU retaliates with sanctions, the company would be better able to survive.
Russian bonds are back on the market for a week, and investors have already put in bids for over $1 billion of debt.
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