MOSCOW/MILAN: Gazprom's energy trading unit Gazprom Marketing and Trading is moving to St Petersburg from London, Russian news agency Interfax cited sources as saying on Friday.
Sources at the Gazprom unit could not immediately confirm the move to Reuters, while a spokesman for the trading venture declined to comment.
One source briefed by a member of the Gazprom trading team said sanctions placed on Russia by the West over the course of the past year for its actions in Ukraine, have had an impact on business, including liquefied natural gas (LNG) deals.
"Their team has said it has been hard to transact," the source said.
Russian companies have been effectively shut out of Western debt markets, forcing some to rethink or delay capital intensive projects and restricting their ability to trade with Western companies.
Gazprom Marketing and Trading, which has evolved into a major force trading energy commodities, employs 1,200 people in the UK and has been steadily beefing up its offices in recent years as part of plans to become a top player in the fast-growing LNG market.
Its trading arm is currently seeking physical LNG traders after losing two in London last year, but a St. Petersburg location may complicate any recruitment drive.
Gazprom relocated its oil arm Gazprom Neft to St Petersburg, the home town of President Vladimir Putin, several years ago despite facing resistance from employees and management who thought it was too far away from decision-makers in Moscow.
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