Although Aleksei Miller, chairman of Board of Gasprom company, was not included into the new list of the US and European Union (EU) sanctions, the Russian gas concern admits that in the future the company’s actions could be limited. Gasprom has warned about possible consequences of introduction of sanctions in the annual report for year 2013.
“We do not rule out that the effective or new sanctions could be applied to the companies of Gasprom group,” read the company’s report. Introduction of sanctions could have a “significant negative influence” on the financial situation of the concern. The group sells majority of the products in the EU and it also buys equipment and owns some assets in Europe. In particular, Gasprom owns 50% in Nord Stream and South Stream, 48% in Europolgas (owner of the Polish section of the Yamal-Europe gas pipeline), 10% in the British Interconnector, 50% in Dutch BSPC B.V. (owns Blue Stream) and also shares in some other companies.
Another risk mentioned in Gasprom’s materials is emergence of new conflicts or escalation of the existing conflict between Russia and other countries, including Ukraine. This could negatively affect Russian economy and lead to loss of confidence of the international investors in investments in Russia and, as a result, to reduction of prices for Gasprom’s shares. Another risk is impossibility to borrow capital at the international markets.
In order to reduce the risk, the company is going to diversify the market towards the Asian and Pacific region and is going to replace import. Aggravation of relationships between Ukraine and Russia calls into question reliability of gas deliveries to Europe via Ukraine and the ability of Ukraine to repay the gas debt and pay for the current deliveries, read materials of the company.
