* Novatek says has sufficient liquidity
* Second-quarter profit surges on rising liquids sales
* Total says stopped buying Novatek's shares
(Adds detail, combines stories)
By Vladimir Soldatkin
MOSCOW, July 30 Russia's second largest natural
gas producer Novatek said on Wednesday it was
assessing the impact of U.S. sanctions on the financing of joint
In its quarterly report, it also said that net profit surged
in April-June - before the sanctions were imposed - thanks to
the launch of its processing complex in the Baltic Sea.
The company repeated that its key projects would go ahead
despite sanctions imposed by Washington over Moscow's actions in
Ukraine. It also said that the company had sufficient liquidity
"to adequately fund its core oil and gas business operations".
The sanctions have limited the company's access to Western
funds, especially for its $27 billion liquefied natural gas
project in the Russian Arctic which it is working on with
France's Total and China's CNPC.
"Management will continue to closely monitor the economic
and political environment in Russia and the world community, as
well as the domestic and international capital markets to
determine if any further corrective and/or preventive measures
are required to sustain and grow our business," the company said
in a statement.
Total owned 18 percent of Novatek's shares at the end of
June, and said earlier on Wednesday it had stopped buying them
when a Malaysian airliner was shot down over Ukraine earlier
Novatek said its second-quarter net profit almost tripled
year-on-year, beating market expectations because of an increase
in liquids production on the back of launching the Ust-Luga
complex in the Baltic Sea.
The company, co-owned by Gennady Timchenko, who is also
under U.S. sanctions, said net profit reached 31.95 billion
roubles ($896 million), above the average forecast of 27.8
billion roubles in a Reuters poll.
Revenues grew 52 percent, to 88.4 billion roubles, the
company said. Analysts had expected rising sales of liquids,
such as gas condensate, to drive revenues 50 percent higher to
86.8 billion roubles.
(Reporting by Vladimir Soldatkin, editing by Thomas Grove and