E.ON profit falls as weak rouble hits Russian business

Germany's biggest utility E.ON posted a 12 per cent drop in first-half core profit, hit by a weakening currency in Russia, its most important foreign market that is the target of Western economic sanctions over Ukraine.

E.ON yesterday said earnings before interest, tax, depreciation and amortisation (EBITDA) at its Russian energy business declined by a quarter due to a drop in the rouble, and warned the currency could fall further.

The rouble has dropped 7 per cent against the euro so far this year, as the Ukraine crisis has intensified.

The sanctions imposed on Russia’s defence, oil and financial sectors in response to Moscow’s support for separatists waging an insurrection in Ukraine are intended to hurt an already weak economy. – (Reuters)