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Profits Crash Dramatically For Russia's Rosneft After Sanctions

Russian state-controlled energy giant Rosneft says its profits during the third quarter of 2014 crashed dramatically after Western sanctions were imposed over Russia’s role in the Ukraine crisis.

Rosneft said on October 29 that its third-quarter net profits fell by 99.3 percent – down to $24.4 million -- compared to the same three-month period in 2013.

Rosneft’s access to Western financing and technology – needed to service its debts and bring east Siberian fields online – has been cut by the sanctions.

Rosneft also has been hurt by the falling value of Russia’s ruble currency.

Russia’s Economic Development Minister Aleksei Ulyukayev said on October 29 that the government cannot satisfy a request from Rosneft for a further bailout to help it service debts.

In August, Rosneft asked the Russian government for a huge financial bailout to help it repay debts of about $45 billion.

Based on reporting by Reuters and AFP

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