MOSCOW, Dec. 15 (UPI) -- Though evolving because of Western pressure, the outlook for the Russian natural gas industry remains optimistic, a Russian lawmaker told state media.
Low prices and Western sanctions imposed in response to Russia's reaction to the Ukrainian embrace of the European Union have left the Russian economy teetering on the brink of recession. Last week, the Russian currency traded at an all-time low against the U.S. dollar for at least the third time this year.
"Unfortunately, our relations in the gas sector today are not only affected by the market, but also by politics -- first and foremost the politics of the United States and the European Union," Pavel Zavalney, deputy chairman of the energy committee in the State Duma, told Russian news agency Sputnik, formerly RIA Novosti.
Apart from sanctions, EU law restricts companies that control natural gas production from controlling delivery mechanisms as well. That, in part, forced Russian natural gas company Gazprom to reconsider its long-planned South Stream pipeline for Europe.
Zavalney said that tepid global economic growth was keeping energy demands low, though that's only a temporary situation. Economies of the Asia-Pacific, especially China, are emerging as major clients for Russian natural resources.
"I am convinced that our large resource potential and clear understanding of the tasks we face will allow the Russian gas industry to maintain its position as a backbone industry of our economy and one of the guarantors of global energy security," he said in an interview published Sunday.
Russia derives about half of its government revenues from oil and natural gas exports.
