Russian gas producer Gazprom said Tuesday it posted an 8.5-fold drop in its net income for the first half of the year as Europe turned away from Moscow's energy supplies over Ukraine.

After Russian President Vladimir Putin sent troops to Ukraine last year, European countries, which were heavily reliant on Russian natural gas supplies, raced for other sources.

On Tuesday, Gazprom said its net profit for January through June 2023 fell to 296 billion rubles ($3.1 billion) from 2.5 trillion rubles in the same period last year.

Famil Sadygov, deputy CEO at Gazprom, chalked up the fall to the weakening ruble.

"The decline in exports to Europe was partially offset by an increase in supplies to China, which will continue to grow within contractual obligations, as well as by the efficient operation of the oil business," said Sadygov.

In response to Russia's assault on Ukraine, Germany scrapped the approval for the Nord Stream 2 pipeline, which would have deepened European reliance on Russian gas supplies.

Moscow said that instead gas supplies to China last year had doubled compared to the previous year and that it hopes to further increase deliveries after losing its share in the European market.