Russia's Gazprom reported a 41 percent fall in first-quarter net profit after cutting prices for gas deliveries to Ukraine, and the gas producer faces more pain this year due to its unresolved dispute with Kiev.
Ukraine's "doubtful" trade accounts, a reference to either the non- or slow payment of debts by state gas producer Naftogaz in the first quarter, had forced Gazprom to write off 71.3 billion rubles ($1.9 billion), Gazprom said. Russia's largest gas producer says Ukraine now owes it $5.4 billion for supplies, a debt that will hurt profits further into the year. With little sign of any resolution to the pricing dispute with Ukraine, the impact of Russia's decision to turn off the taps to its neighbor may be felt much longer, analysts said.
INC News, 11/09/2014
No comments:
Post a Comment