Gazprom Says Net Income Plunged Dramatically In 2014

Russian’s Gazprom announced on April 29 that it experienced a massive fall in net income during 2014.

Analysts attribute the decline to international sanctions, a weakened ruble, and a fall in global oil prices.

Gazprom, which generates about 8 percent of Russia’s gross domestic product, says its net income fell from about $22 billion in 2013 to $3.1 billion in 2014.

The state-controlled gas giant said the fall of the ruble’s value against the U.S. dollar inflated its dollar-denominated debts.

Gazprom also reduced its sales of gas to Ukraine, which had been one of its most important markets, in a dispute over debts and pricing.

International sanctions were imposed against Gazprom, Sberbank, and other key Russian firms to punish Moscow for its role in eastern Ukraine’s conflict and its illegal annexation of Crimea.

Based on reporting by Reuters, AP, and AFP