Russian Government-backed natural gas company Gazprom has announced plans to reduce investment in operations by a fifth in 2024, reported the Moscow Times, citing AFP.

According to the investment draft presented by the Gazprom Management Committee, the financing of the investment programme may drop to Rbs1.57trn ($17.8bn) in 2024.

That is 20% lower compared with the amount of funds allocated for 2023.

The Russian gas major, according to TASS, said the approved financial plan will meet all of the company's liabilities without creating a deficit.

"Decisions on debt financing under the borrowing program will be made on the basis of the market conditions, liquidity and Gazprom's financing needs," it added.

Last month, the Gazprom board of directors reduced the 2023 investment programme by 14.5% to Rbs1.966trn from the initial Rbs2.3trn due to volatile macroeconomic conditions and unfavourable markets.

Gazprom’s lower investment plan and budget comes in the wake of declining gas supplies to Europe and high taxation.

Following Moscow’s decision to invade Ukraine in February 2022, European nations have drastically reduced their gas imports from Russia.

Significant tax increases on the industry were announced last year to fund Kremlin's budget.

Gazprom cut its gas output by 25% in the first half of this year as it struggled to make up for lost revenues, and it has redirected part of its supplies to China and Turkey.

The gas company reported a Rbs296bn profit in the first half of this year, far less than the Rbs2.5trn profit it made in the same period of 2022.

Earlier this month, Russia’s ruling party lawmaker Pavel Zavalny warned that Gazprom's losses could exceed Rbs1trn in 2025, partly because of the increased taxes.