Gazprom says it's made up for Ukrainian row

Second quarter profits for the year are up, which offset some of the damage incurred by contracts with Ukraine, Russian gas company Gazprom said Tuesday.

Gazprom said Tuesday its operating expects for the six months ending June 30 increased 31 percent year-on-year. The company said the "major factor" behind the increase in the operating expense was "mostly related to doubtful trade accounts receivable of Naftogaz Ukraine."

For the second quarter, Gazprom said its profits increased 13 percent to $5.63 billion.

Russia and Ukraine are sparring over gas prices and debt. Ukraine, which pays more for gas than many of its regional counterparts, owes Gazprom more than $5 billion for gas.

European leaders are set to sit down at the negotiating table with Ukrainian and Russian officials next week. The European economy gets about a quarter of its gas needs met by Russia, though most of that gas runs through the Soviet-era transit network in Ukraine.

Disputes between Ukraine and Russia in 2006 and 2009 brought gas disruptions to European consumers. Since Kiev started pivoting toward the European Union in November, Russia has faced increasing sanctions pressure on its energy sector because of its reaction.

For the first half of the year, Gazprom said profits were down 23 percent compare to the same period in 2013.