Support The Moscow Times!

Russia's Gazprom Says Net Profit Plummeted 70% in 2014

Gazprom Headquarters in Moscow. Denis Abramov / Vedomosti

Gazprom's net profit, calculated under Russian Accounting Standards (RAS), fell 70 percent last year to 189 billion rubles ($3.3 billion), Russia's top natural gas producer has said.

Gazprom's net profit under RAS is attributed to the parent company only and not its subsidiaries such as Gazprom Neft or its power business. Gazprom uses the profit figure as a base for dividend payout calculations.

The company also said it had acquired stakes in the $40 billion South Stream gas pipeline project, which Russia scrapped at the end of last year, citing EU objections.

The pipeline was supposed to deliver gas to southern Europe without crossing Ukraine. However, Moscow instead named Turkey as its preferred partner for an alternative pipeline.

Gazprom said it had bought Eni's 20 percent stake in the South Stream charter capital for 22.42 billion rubles ($388 million), Wintershall's 15 percent for 16.85 billion rubles and EDF's 15 percent for 16.82 billion rubles.

The company also said it had booked reserves of 22.3 billion rubles for possible writedowns on the Shtokman project, which was supposed to produce offshore gas in the Barents Sea. The company scrapped the plans due to cost overruns.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more