Russian gas giant Gazprom on Wednesday announced a five percent fall in net profits in the first quarter of this year, as lower gas prices meant it failed to cover growing expenses. 

From January to March the state-run behemoth registered a drop in profits to 362 billion rubles ($5.6 billion, 5 billion euros) from 382 billion rubles in the same period last year, a statement said.  

The world's largest gas company -- which supplies around a third of Europe's gas -- has been hit by a drop in gas prices linked in part to the falling price of oil. 

The drop in profits comes despite a rise in overall revenues to 1.74 trillion rubles, up just over 5 percent from 1.65 trillion rubles for the first quarter of 2015. 

The overall volume of gas sold increased 9 percent to 144 billion cubic metres of gas. 

The volume shipped to the key markets of Europe and Turkey rose by 49 percent but the net value of those sales only rose 22 percent.  

The volume of sales to other former Soviet nations fell by 16 percent, due in part to Ukraine turning its back on Russian supplies against the backdrop of its broader feud with Moscow.