Russia's natural gas giant Gazprom has posted a second successive drop in annual profits, and warns that the escalating crisis in Ukraine could disrupt its crucial supplies to Europe.
The world's biggest gas producer admitted that the threat of US sanctions on the Russian energy sector could impact its operations and damage the wider Russian economy, which is heavily dependent on resource exports and already in danger of tilting into recession this year.
"The emergence of new or escalated tensions between Russia and other countries, including any escalation of the crisis in Ukraine, or the imposition of international sanctions in response to these tensions, could negatively affect economies in the region, including the Russian economy," Gazprom said in an annual management report on Tuesay.
The state-run firm said its 2013 net profit slipped by seven per cent to 1.139 trillion rubles ($A34.65 billion).
It also reported a 20-per cent decline in sales to ex-Soviet states such as Ukraine.
But its fourth-quarter revenues improved by five per cent in annual terms and beat analyst forecasts.
Economists said the figures had few implications for the stock price of Russia's largest company, which would be determined by events in Ukraine and the possibility of Gazprom next month striking a mega-deal with China that has been under discussion for nearly a decade.
"As of now, the Ukraine issue is crucial for Gazprom's shares," Moscow's VTB Capital investment bank said in a research note.
Gazprom shares traded flat on the Moscow Exchange despite a one-per cent rise in Russia's ruble-denominated MICEX index.
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