Gazprom Gas Sales Drop 17 Per Cent
Russian major Gazprom has noted a 17 per cent drop in net gas sales for the first quarter of 2012 in comparison to the first quarter of 2011, a decrease in sales of RUB 721,490 million (approx. €17.7 billion).
In a financial statement released today, the company said that sales to Europe had dropped by three per cent for the period ending 31st of March 2012 from the same period in 2011 while sales to former Soviet countries had decreased massively by 30 per cent.
Net sales to the domestic Russian market increased slightly by 1 per cent; however, the company says that this is due to increased gas prices with the volume of gas sold down on the previous year by 3 per cent.
The period also saw a major decline in profit, compared to the same quarter in 2011, with a decrease of 24 per cent.
The company's sales have come under increasing pressure in the past year with many countries and customers seeking to turn to alternative sources of supply. The company is currently under the scrutiny of the EU, which yesterday announced that it had launched an investigation into suspected anti-competition practices in the company. The charges against the company include allegations that the company has been charging unfair prices to its customers as well as stymieing the potential for competition in the market.
However, in a statement yesterday afternoon, Gazprom denied any wrongdoing and said it conforms to the legal obligations required of it.
"Gazprom scrupulously abides by all the provisions of international law and national legislation in all of the countries where Gazprom Group conducts business," the statement said. "Gazprom Group's activities on the EU market are in full conformity with legal standards applied by other natural gas producers and exporters, this includes price formation mechanisms."