Vladimir Putin Alexei Miller
Russia's President Vladimir Putin and Gazprom CEO Alexei Miller at a pipeline ceremonyReuters

Russia's state-run gas giant Gazprom has said its profits fell 61% in the third quarter of 2014 after it halted supplies to Ukraine, one of the company's biggest customers.

The group's profits from July to September reached 105.7bn rubles ($1.5bn) but its revenues dropped 6% compared to same period in the previous year, reaching 1.113bn rubles ($6.5m).

Gazprom posted an overall 35% drop in nine-month net profit year-on-year, caused by the dispute with Ukraine's government and currency losses.

The state-controlled energy group predicted a bleak outlook amid subdued oil prices. Gas prices usually follow a similar pattern to oil prices, albeit with a time lag of around six months.

"Further falls (in oil) may negatively impact our business...and the ability to finance planed capital investments," Gazprom said in a statement.

Crude oil prices have fallen by around 60% since June last year, amid an ongoing supply glut and weak global demand.

Gazprom halted gas deliveries to Ukraine last summer after Kiev refused to pay an inflated price for natural gas deliveries, protesting that it was being charged a political price.

Russia annexed the Ukrainian peninsula of Crimea in March and stands accused of fuelling an ongoing conflict in eastern Ukraine, where pro-Russian separatist rebels have launched a number of attacks in recent weeks.

While Russia and Ukraine reached an interim agreement, brokered by the European Union, over the price Kiev would pay for gas, Ukraine has said it would seek to reduce its dependency on Russia for its energy needs in 2015.