Crisis poses no major threat to Gazprom

BISHKEK, Kyrgyzstan, Oct. 9 (UPI) -- Russian energy giant Gazprom does not forecast a long-term setback from the looming worldwide economic downturn, officials said Thursday.

Gazprom chief Alexei Miller said there was no major risk to the firm, despite a massive sell-off on major Russian indexes that forced regulators to close the markets earlier this week, RIA Novosti reported. Share prices for Gazprom have declined more than 60 percent from May values.

Miller pointed to the rise in the price of natural gas as a bulwark against economic collapse as European market prices hit all-time highs of $500 per 1,000 cubic meters (35,314.6 cubic feet) Oct. 1.

"The work of gas sector enterprises is built on different principles, and even if something critical happens in oil markets, gas companies always have at least six months to analyze their financial business," Miller said.

Russian oil and gas majors sought government backing Tuesday amid the global credit crunch in order to refinance their debt and continue with planned investments.

Miller's comments came during a meeting with government officials in Kyrgyzstan, where a memorandum of understanding was reached between the two parties in the natural gas sector.