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    Cash Flow Problems With Gazprom

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    After reading a financial article, which cash flows (present, future, annuity, or gradient) is implied or mentioned in the article?

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    Bierman, Stephen. Gazprom-Neft Keeps Positive Cash Flow in $16 Billion Growth Plan. Bloomberg, Feb 28, 2014

    Gazprom is the main, state owned, gas company of the Russian federation. In this article, a higher price of oil, going beyond the forecasts, in late 2013 increased its cash flow substantially. In this case, it is a present flow. Specifically, its about $2 billion higher than predicted.

    Of course, the gradient type flow is impossible since the price of oil is always changing. However, for Gazprom to announce that it is expanding its petroleum production with new wells (some in Siberia and Iraq), then at least there is a sense for investors that profits will rise.

    For an annuity, it would have to be a contractual obligation that guarantees a set price. This is the ...

    Solution Summary

    The analysis of the Russian Gazprom giant and its present cash flow. A huge windfall flow is being used to expand the operations of this firm, making the ill-conceived sanctions on Russia irrelevant.