MOSCOW: Russian natural gas exporter Gazprom said yesterday further Western sanctions over Ukraine could potentially disrupt its gas exports to Europe and hit its business and shares.
Gazprom, headed by Alexei Miller, a longstanding ally of Russian President Vladimir Putin, and its managers have not been hit by US or European Union sanctions over Russia’s role in the Ukraine crisis. But the company, which meets 30 percent of Europe’s demand for gas, said in its financial report that a pricing row with Kiev could potentially lead to a disruption of its gas exports to Europe through pipelines crossing Ukraine.
The West has so far imposed limited sanctions on Russian government officials and businessmen, as well as on several companies. “An expansion of the US, EU and other sanctions programmes could adversely impact operations and the financial condition of the Gazprom Group,” it said in a management report following its 2013 financial results.
Gazprom posted a 7 percent drop in 2013 net profit to 1.139 trillion roubles (around $35.7bn) , in line with forecasts and reflecting a weaker rouble. Net debt in rouble terms rose 4 percent to 1.11 trillion roubles.
The rouble declined 7.2 percent year on year against the dollar in 2013 reflecting a weakening economy.
Gazprom said revenue from gas sales to Europe and other countries amounted to 1.68 trillion roubles, or 57 percent of total gas sales. Reuters
