MOSCOW, Feb. 19 (UPI) -- Russian energy company Gazprom will be able to continue as normal even if oil prices drop to $30 per barrel, the company's finance director said Thursday.
The Russian economy is entering a period of prolonged weakness because of the dual strains of Western sanctions imposed in response to crises in Ukraine and a weak crude oil market. Though recovering, crude oil prices are about 40 percent less than they were in June 2014.
With few signs of a cease-fire holding in eastern Ukraine, some Western powers have enacted additional sanctions on Russia.
Gazprom Finance Director Andrei Kruglov told state-run television the company planned for oil prices in the range of $30-40 per barrel when drafting its 2015 budget.
"The company will be ready to implement all of its investment plans even at such oil prices," he said.
In late December, when Brent crude oil prices were at $58 per barrel and trending toward $50, the Russian energy company slashed expenses by $238 million and forecast about $1.6 billion in foreign loans.
The pressure on Russia's economy left the value of the ruble, the nation's currency, weakened. It traded Thursday near 62 per U.S. dollar, hovering near its historic low.
Kruglov said the company was holding U.S. dollars and euros from payments for exported commodities, which helped protect Gazprom's overall finances.
"Thanks to it, the company is in a good financial shape," he said.
