Hidden trials for Gazprom

(FILES) A file picture taken 01 July 2006 shows the logo of Russia's state-controlled gas giant Gazprom in front of Russia's Government building in Moscow. Russia's state-run gas monopoly Gazprom said Thursday 02 November 2006 it had presented a proposal to double the price it charges Georgia for natural gas, as the two countries remained locked in a sharp political dispute.

Fortunes intertwined: a Gazprom sign is seen in front of the White House, the seat of Russia's Prime Minister Vladimir Putin

ALEXANDER NEMENOV

By VLADIMIR AFANASIEV Moscow

 23 January 2009 00:01 GMT

The Ukraine gas row has only exacerbated problems at the Russian giant it struggles with huge debt and project inertia

The highly publicised hostilities between Russia and Ukraine over gas deliveries appeared to have been settled this week, but with the truce come questions about the financial health of gas monopoly Gazprom.

The Russian group, considered by many to be the extended arm of the Kremlin, was already under pressure before the showdown with Ukraine. Weakened commodity prices and Gazprom's enormous debt have been like kryptonite to the once mighty titan.

As a result, Gazprom's share price has plummeted 70% since last January.

The loss of significant gas export revenues in recent weeks has…

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