Russia's Gazprom profits plunge 61%, hit by Ukraine row

 Russia's gas giant Gazprom on Thursday said its third quarter profits plunged 61 percent as supplies were suspended to Ukraine, one of its main customers, AFP reports.

The group's profits between July and September reached 105.7 billion rubles ($1.5 billion) but revenues in that quarter were down 6 percent year-on-year to 1.13 trillion rubles ($16.5 billion).

Analysts were expecting the group's profits to drop significantly due to its dispute with Ukraine.

Kiev has refused to accept a price rise imposed after its pro-Western authorities came to power a year ago.

As Kiev's debts built up, Gazprom cut supplies in June and only switched them back on in autumn, with reduced volumes of gas that Ukraine's state company Naftogaz has to pay for in advance.

In the first nine months of 2014, Gazprom's net profits fell by 35 percent to 556.2 billion rubles ($8.14 billion). Its revenues reached 4 trillion rubles ($58 billion), up 6 percent from the same period a year ago.

The profits were hit by factors including an increase in impairment provisions made over Naftogaz's debts, the group said in a statement.

Gas sales fell 2 percent year-on-year between January and September to 2.084 trillion rubles ($30.5 billion), with those to Europe remaining fairly stable.