Russian energy giant Gazprom announced today that net profit in the first quarter of the year fell by 41% due to the crisis in Ukraine while they are estimating that gas exports to Europe this year will be smaller than originally planned and the price of the product will be significantly reduce .

The company is expected to face new problems due its dispute with Kiev, which is still not been resolved as yet, as well as the desire of Europe to reduce its dependence on Russian natural gas.

As the Ukrainian state gas company Naftogaz delays or does not pay its debts to Moscow, Gazprom was forced to write off the amount of 71.3 billion rubles (1.9 billion dollars). A member of the Russian company also said that gas exports to Europe are expected to fall this year to 157 billion cubic meters “or slightly less.” In 2013 they exported 162 billion Cubic meters, while this year is estimated that the European countries would receive 158.4 billion Cubic meters.

The deputy head of Gazprom Miichael Malgkin, also said that the average price of Russian gas to Europe is expected to fall to 350 dollars per 1,000 cubic meters, from 387 that use to be in 2013.

Regarding the debts of Ukraine, Gazprom claims that the amount has reached the 5.4 billion dollars. The Director of EON, one of the largest energy companies in Germany, Johannes Theissen assured, however, that the conflict between Russia and Ukraine on gas “is not a reason to start knitting sweaters.”

His statements in an interview to be published in tomorrow’s issue of the newspaper Süddeutsche Zeitung, were intended to reassure the Germans who fear that the market supply of natural gas will be disrupted in the winter.

From mid-June, Russia has closed the taps to Ukraine, while in recent days Poland has accused Russia of reducing the volume of gas that has been delivered, but this is contradicted by Gazprom.