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Gazprom has announced a sharp rise in profits thanks in large part to a weak Russian ruble.

The Russian energy giant’s net profit for Q1 2015 was 382 billion rubles ($5.9 billion), up 71% on a year earlier. Total sales rose 6% to 1.65 trillion rubles.

Gazprom sells its gas in dollars, so a weak currency means the price of gas in rubles rises.Gazprom profits 2015

The weak ruble helped to offset a fall in the volume of sales of almost 10%, to 132 billion cubic meters of gas.

This fall was partly due to sanctions imposed by the West following Russia’s actions in the Ukraine.

It meant Gazprom shares were down almost 2% in trading in Moscow despite the jump in quarterly profits.

With the price of oil – which is a key determinant of the price of gas – back below $50 a barrel, many analysts believe Gazprom results for the rest of 2015 will be weaker than the first quarter.

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Gazprom has reported a big drop in its annual profits after being hit by the fall in the value of the Russian currency.

Russia’s largest energy company reported a net profit of 159 billion rubles ($3.1 billion) for 2014, down 86% from a 1.14-trillion-ruble profit in 2013.Gazprom profit drop 2014

Last year’s fall in oil prices also contributed to the plunge in Gazprom’s profits.

At the same time, a debt and pricing dispute meant Gazprom cut gas supplies to Ukraine, one of its key markets.

Meanwhile, gas sales to Europe and other countries declined by 8.5%.

President Vladimir Putin has ordered the Russian government to curb rising vodka prices.

Vladimir Putin, who has been hit by increasing economic woes, said that high prices encouraged the consumption of illegal and possibly unsafe alcohol.

Russia’s currency, the ruble, has lost value recently due to falling oil prices and Western sanctions.

The country’s former finance minister warned that Russia would enter recession in 2015.Russian vodka rising prices

Vladimir Putin, who promotes a healthy lifestyle, asked “relevant agencies” to think about what he said, adding that the government should fight against the illegal trafficking of alcohol.

According to a leading university study last year, 25% of Russian men die before reaching their mid-50s, Reuters reports.

Alcohol was found to be a contributing factor in some of these early deaths.

Since 2013, the Russian government-regulated minimum price of half a liter (17 oz) of vodka has increased by around 30% to 220 rubles ($4.10), Reuters adds.

Annual inflation in Russia currently stands at 9.4%.

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President Barack Obama will sign a bill imposing new Russian sanctions despite reservations, the White House has announced.

The bill – which primarily sanctions Russia’s defense industries – passed with overwhelming support in Congress.

White House spokesman Josh Earnest said the bill sent “a confusing message to our allies” but President Barack Obama will sign it because it “preserves flexibility”.

The Russian ruble has lost half its value this year amid lower oil prices and Western sanctions.Barack Obama Russia sanctions bill

The currency went into free-fall in trading on December 16.

The bill would also give Barack Obama the authority to provide lethal and non-lethal military assistance to Ukraine, but not require him to do so.

The US and European powers have sanctioned Russia previously over the country’s annexation of Crimea and its support for separatists in eastern Ukraine.

Secretary of State John Kerry, who met Russia’s foreign minister in Rome, said: “These sanctions could be lifted in a matter of weeks or days, depending on the choices that President Putin takes.”

However, John Kerry said Russia had made “constructive” moves in recent days.

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The Russian ruble went into free-fall in December 16 trading, falling repeatedly to hit record lows, despite the central bank’s dramatic decision to raise interest rates from 10.5% to 17%.

The rate rise was meant to strengthen the currency.

It helped it to 58 to the dollar early on Tuesday, but the dollar at one stage bought as many as 79 rubles.

The ruble has lost more than half its value against the dollar this year, hit by cheaper oil and Western sanctions.

Both of these have weakened the Russian economy.

Russia’s central bank has now pledged fresh further measures to try to stabilize its currency, with First Deputy Governor Sergei Shvetsov describing the situation as “critical”.

However, the Russian stock market was higher, with the main Micex index up 2% in afternoon trading.

Last week, Russia raised rates to 10.5% from 9.5%, a move that had little impact. The ruble’s slide this week was prompted by fears that the US was considering a fresh set of sanctions against the country for its support for separatists in Ukraine.Russian ruble crisis 2014

Russian oil giant Rosneft’s decision to issue 625 billion rubles ($9.9 billion) worth of bonds late last week at lower rates than Russian bonds has been blamed by some for exacerbating the currency’s decline.

However, Rosneft denied it was trying to dump rubles, saying “not a single ruble” would be used to buy foreign currency.

The chairwoman of the Russian central bank, Elvira Nabiullina, said the latest rate rise should curb inflation and encourage Russians to put more rubles into interest rate-bearing accounts.

However, she said she did not expect the ruble’s value to be immediately influenced by the rate rise.

“The ruble is currently undervalued according to all fundamental parameters and the state of the economy… and the current account,” she said.

“But for the ruble to return to its fundamental exchange rate it would take time.”

Russia’s central bank has previously tried unsuccessfully to stabilize the currency, buying rubles in the markets.

It has spent more than $70 billion supporting the ruble since the start of the year.

“This decision is aimed at limiting substantially increased rouble depreciation risks and inflation risks,” the central bank said in a statement.

Last week, the World Bank warned that Russia’s economy would shrink by at least 0.7% in 2015 if oil prices did not recover. It says an oil price of $70 a barrel would leave it with a fall of 1.5%.

Raising interest rates has its own risks, as more expensive borrowing can itself slow growth. But it may also stem the tide of money leaving the country.

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Russia’s central bank has raised its key interest rate from 10.5% to 17% overnight.

The bank said the move was to try to ease the ruble’s recent fall in value.

The ruble had lost 50% against the US dollar this year as falling oil prices and Western sanctions continue to weigh on the country’s economy.

Before the move, the dollar bought 67 rubles. The rate rise moved it up to 58 against the dollar, although it has since slipped back to 62.

Since the start of the year, the ruble has lost more than 45% of its value against the dollar.

Most analysts thought the move would work to curb inflation, which is running into double figures.Ruble crisis 2014

Russia’s central bank has tried unsuccessfully to stabilize the currency, buying rubles in the markets.

It has spent more than $70 billion supporting the ruble since the start of the year.

“This decision is aimed at limiting substantially increased ruble depreciation risks and inflation risks,” the central bank said in a statement. The decision is effective from Tuesday, December 16.

The leap in rate follows an increase to the prior rate of 10.5% on December 11 and an increase of 1.5% to 9.5% in October.

Last week, the World Bank warned that Russia’s economy would shrink by at least 0.7% in 2015 if oil prices did not recover. Capital Economics’ latest prediction is for a contraction of 2%.

Raising interest rates has its own risks, as more expensive borrowing can itself slow growth. But it may also stem the tide of money leaving the country.

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The Russian ruble has fallen to a new low against the US dollar, as falling oil prices and Western sanctions continue to weigh on the country.

As of December 15, it takes more than 60 rubles to buy a single dollar.

The 60 mark is considered a “psychological barrier” for Russia’s national currency.

Since the beginning of 2014, the ruble has lost more than 45% of its value against the dollar.

Russia’s central bank has tried unsuccessfully to stabilize the currency, buying roubles in the markets and raising its main lending rate to 10.5%.

However, those efforts have been overwhelmed by the fall in the price of crude oil – one of the country’s main exports – and by concerns that international sanctions over Ukraine might be stepped up.

Russian authorities appear unable to bring down inflation either – prices are expected to be 10% higher by the end of the year.Russian ruble December 2014

In November, Russia’s central bank announced it was going ahead with a free float of the ruble by abolishing its unofficial link to the euro and the US dollar.

It also announced it was ending automatic interventions to support the currency, instead propping it up only when it was deemed necessary.

The bank had previously supported the ruble when the exchange rate against the euro and dollar exceeded certain limits.

However, last week, the bank admitted it intervened to support the ruble in foreign currency markets, spending a total of $4.53 billion.

The ruble has been heavily affected by the price of oil, which has been in steady decline in recent months.

On December 15, Brent crude fell to almost $60 per barrel – a five-year-low – before recovering to just above $61.

The dip came after the head of oil cartel OPEC reiterated at the weekend that the group would not reduce production to help shore up oil prices.

Russia’s central bank has warned that the country’s gross domestic product could contract by approximately 4.5% next year, if oil remains at $60 a barrel.

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