Gazprom problems run deep after 86% fall in profits

The 2014 figures were spurred on by the ruble, but the problems continue

Gazprom's 86% fall in 2014 profits was put down to the ruble’s plunge at the end of last year. But the company’s problems run much deeper than the weakness of the Russian currency. Gazprom didn’t try to bury the precipitous drop in its profits in its 2014 results, stating they decreased by 980.3bn rubles ($19bn), or 86%, to 159bn rubles for the year, compared with 1.1 trillion rubles posted in 2013. The fall, the company said, was “mostly” due to net currency exchange losses suffered against the US dollar and euro that increased by 925.7bn rubles from the year before. There were also charges for impairments and other provisions worth 245.5bn rubles , such as write-downs for receivables from