Russia's state-run gas giant Gazprom on Wednesday reported net profits in 2014 plunged sevenfold over the previous year, weighed down by fallout from the Ukrainian crisis and the shrinking value of the ruble. The company, which was the most profitable in the world just a few years ago, reported 159 billion rubles ($3.09 billion) in net profits last year, according to Gazprom's annual report published Wednesday. This is down from 1.14 trillion rubles in 2013. Gazprom explained the 86 percent drop was caused by two main factors, the decreased value of the ruble and its frictions with Ukrainian gas operator Naftogaz. The company said its expenses went up by 926 billion rubles because of an "increase in foreign exchange differences expenses due to appreciation of the dollar and euro against the ruble." It was also forced to write off a whopping 34 billion rubles arising from its conflict with Naftogaz, which spiraled after the ouster of Ukraine's Kremlin-backed former president, Viktor Yanukovych. The company also faces an investigation by the European Commission, which last week charged it with abusing its dominant market position in Europe.