New sanctions aganst Russia to hurt Gazprom

April 30, 2014

The escalation of the Ukrainian conflict and new Western sanctions against Russia may hurt Gazprom’s financial position and will limit the company’s ability to borrow abroad, it said in a statement on April 29, Prime has reported.

“The bulk of Gazprom’s revenue and liabilities is denominated in U.S. dollars and euros. Extension or introduction of new sanctions against Gazprom group companies may significantly undermine the activities, financial position and results of Gazprom group’s operations,” the company said.

On April 28, the U.S. has extended the list of sanctions to seven close allies of Russian President Vladimir Putin, including CEOs of fuel giants Rosneft and Gazprom Igor Sechin and Alexei Miller, respectively, and to 17 companies.

According to Gazprom’s statement, any gas disputes with Ukraine may trigger disruptions in export supplies via pipelines, the company said.

“The political and economic disputes between Russia and Ukraine are a reason for concern about the safety of gas supplies to Europe through Ukraine and about the ability of Gazprom’s Ukrainian counteragent to redeem its debt for supplied gas and to pay for the current supplies.”

Copyright: Prime, 2014