Exports hurt Russian oil income

June 10, 2013 at 7:58 AM
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MOSCOW, June 10 (UPI) -- Costs associated with oil exports to countries outside the Commonwealth of Independent States hurt profits, Russian crude oil producer Bashneft said Monday.

Russian crude oil producer Bashneft reported a net profit of $394 million for the first three months of the year, down 10.1 percent year-on-year, Russian news agency RIA Novosti reported.

"The key factors in the year-on-year decrease in income included higher costs related to an increase in exports of petroleum products to countries outside the CIS, as well as an increase in production and operating costs," a Bashneft statement published by RIA Novosti said.

The company blamed higher export duties and transportation costs for non-CIS members for the revenue decline. The CIS is a loose federation of former Soviet republics.

Last week marked the 40th anniversary of the first Russian natural gas deliveries to Germany. Gazprom Deputy Chairman Alexander Medvedev took part in a ceremony in Germany to mark the occasion.

"We are proud that together we bring light and heat to European homes and we are the backbone of a future environmentally friendly power industry," Medvedev said in a statement.

Germany is the largest Gazprom customer among members of the European Union. The country serves as a destination for Gazprom's twin Nord Stream natural gas pipeline through the Baltic Sea.

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