Lukoil Warns of Sales Decline Due to Russia's Image
August 14 2014 - 08:00AM
Dow Jones News
MOSCOW--Russia's largest privately-owned oil company Lukoil
Holdings (LUKOY) warned Thursday of a possible decline in sales
abroad due to Russia's negative public image.
In its quarterly report under Russian audit standards the
company said "a negative perception of Russian Federation's public
image in the majority of the company's countries of operations..
may lead to a short-term decline in retail sales' by
association.
Lukoil also said the "negative development of the Ukrainian
situation may have a negative impact on macroeconomy...including
higher exchange rate volatility and business climate degeneration
in general."
Lukoil itself isn't under sanctions the West introduced against
Russian officials and corporations in response to the annexation of
Crimea and support of pro-Russia separatists in eastern Ukraine.
However, Lukoil's warning shows that despite the soothing tone of
Kremlin officials, the sanctions are denting the whole economy,
threatening the companies not directly affected by them.
Write to Alexander Kolyandr at alexander.kolyandr@wsj.com
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