Russia's Gazprom reports higher revenues despite reduction in exports

Russian energy company Gazprom has raised its budget for the coming year thanks to higher than expected revenues as energy prices soar.

"The new budget plan reflects the 34% increase in revenues from gas sales compared to the originally prepared budget," Gazprom's deputy head Famil Sadygov said on Thursday on the group's Telegram channel.

Lower physical revenues from gas exports were fully offset by the rising export price of gas, he said.

The increase in revenues in the first half of the year allowed for the tax increase and important investment projects such as the Power of Siberia pipeline and storage facilities on the Yamal peninsula in northern Siberia, Sadygov said.

The company is also going to spend 1.2 trillion roubles ($20 billion) on dividend payments, he said.

Gazprom slashed gas supplies to Europe this year in a move widely seen as retaliation by Moscow for sanctions imposed by Western countries.

Supplies through the Nord Stream 1 pipeline, which was already transporting less gas, were cut off in early September, supposedly due to technical problems.

Politicians in Berlin say Moscow is seeking to put more pressure on Europe and demand sanctions be lifted.