Facing tensions in Europe and increased competition in Russia, the country’s gas monopoly Gazprom is struggling to maintain its dominance on the global energy market.

With the Russian economy facing recession, lower oil prices and Western sanctions over Ukraine, Gazprom is expected to produce 414 billion cubic metres of gas this year, an all-time low for the public company sitting atop some of the world’s largest natural gas reserves, according to Russia’s Economy Ministry.

Gazprom has see...