Record Profits

Higher energy prices benefited some of Russia’s largest oil producers, including OAO Lukoil, TNK-BP (BP/), and OAO Gazprom (GAZP) Neft, all of which are projected to have record profit last year, according to forecasts compiled by Bloomberg. OAO Gazprom, the country’s gas export monopoly and largest company, is also forecast to record its biggest-ever profit in 2011.

Urals crude, Russia’s main export blend, averaged $109 a barrel in 2011, 40 percent more than $78 in the previous year. That helped the budget return to a surplus of 0.8 percent of GDP from initial forecasts of a shortfall.

“The oil price has a major impact on Russia and the international financial situation has a major impact on Russia,” Roland Nash, chief investment strategist at Moscow- based Verno Capital, said yesterday in a telephone interview. “Russia grew by 4 percent even though the developed world was going through a major international financial crisis.”

The ruble-denominated Micex Index fell 17 percent in 2011 as net capital outflows more than doubled to $84.2 billion, according to a preliminary estimate by the central bank. The ruble weakened 4.9 percent against the dollar to 32.1475.