By Jonathan Davies

The falling price of the Russian rouble and oil prices resulted in a 21% decline in BP profits.

The oil giant reported profits of $3bn (£1.86bn) in the three months to the end of September, down from $3.7bn last year.

The economic sanctions imposed on Russia as a result of the crisis in Ukraine are having a deep and clear impact on BP, which invests heavily in Russia through its stake in Rosneft. The price of the rouble had plummeted since the sanctions were brought in, and that caused BP's profit from Rosneft to fall almost $700m to $110m.

BP also paid another $314m relating to the Deepwater Horizon oil rig explosion in the Gulf of Mexico in 2010. It has now paid more than $20bn as a result of the disaster, and it set to pay out even more in the coming months.

"Growing underlying production of oil and gas and a good downstream [refining oil] performance generated strong cash flow in the third quarter, despite lower oil prices. This keeps us well on track to hit our targets for 2014," said BP chief executive, Bob Dudley.

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