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Gazprom sees profits jump by 85% Gazprom renews Ukraine gas threat
(about 1 hour later)
Russian gas giant Gazprom has reported a solid rise in profits and sales amid record gas and oil prices in the first half of the year. Russia's Gazprom has reiterated it will cut gas supplies to Ukraine on 1 January if no new contract is signed.
"The last round of talks with Ukraine is beginning. We are counting hours," the firm's head Alexei Miller said.
He told Russian news television channel Vesti that "Gazprom will have no grounds for supplying gas to Ukraine" if it does not pay out its debt.
Ukraine is a key transit route of Russian gas to Europe, and a supply cut could affect countries further west.
Gazprom has said Ukraine owes $1.67bn (£1.1bn) for gas and $450m in fines.
Gazprom, the world's largest gas producer, supplies a quarter of the European Union's gas needs, or 42% of EU's gas imports.
A similar row between Gazprom and Ukraine in 2006 led to gas shortages in several EU countries.
Prices impact
On Tuesday, Gazprom reported a solid rise in profits and sales following record gas and oil prices in the first half of the year.
For the six months to 30 June, net profit jumped 85% to 609.4bn roubles ($20.8bn, £14.2bn) compared with the same period in 2007.For the six months to 30 June, net profit jumped 85% to 609.4bn roubles ($20.8bn, £14.2bn) compared with the same period in 2007.
Sales rose 52% to 1.74 trillion roubles on both higher prices and volumes.Sales rose 52% to 1.74 trillion roubles on both higher prices and volumes.
However oil prices have slumped from July highs and most observers expect oil firms to see future profits slide.However oil prices have slumped from July highs and most observers expect oil firms to see future profits slide.
Shortages
Gazprom also confirmed it would stop supplying gas to Ukraine on 1 January if no contract is signed.
"The last round of talks with Ukraine is beginning. We are counting hours," the firm's chief executive Alexei Miller told state-owned Russian news television channel Vesti.
Gazprom has said Ukraine owed $1.67bn (£1.1bn) for gas and $450m in fines.
Ukraine is a key transit route of Russian gas to Europe, and a supply cut could affect the amount of Russian gas reaching countries further west.
A similar row in 2006 led to gas shortages in several EU countries.
Crunch impact
Gazprom, the world's largest gas producer, supplies a quarter of the European Union's gas needs, or 42% of EU's gas imports.
The firm also said the credit crunch has affected its ability to attract loans.The firm also said the credit crunch has affected its ability to attract loans.
"At the moment the management can not certainly assess the impact of further decrease in financial markets' liquidity and the growing instability of foreign exchange and stock markets on the group's financial state," the company said in a statement."At the moment the management can not certainly assess the impact of further decrease in financial markets' liquidity and the growing instability of foreign exchange and stock markets on the group's financial state," the company said in a statement.