Miller: Gazprom does not need state funds

MOSCOW, Dec. 19 (UPI) -- Russian energy giant Gazprom will not need government assistance to move ahead with power-generation projects slated for 2009, officials said.

Valery Golubev, the deputy chief of Gazprom, warned in early December that Gazprom would need $3.6 billion in government assistance to progress with projects for 2009.

Gazprom chief Alexei Miller, however, said plans for the construction and expansion of power stations and utility companies were unchanged despite the looming global financial crisis, The Moscow Times reported Friday.

"We will fulfill all of our obligations on investment in the electricity sector," Miller said.

The energy monopoly had asked economic officials to postpone construction of some planned power stations, saying they were redundant. Utility firms had also requested delays, citing declining market demand.

Engineering firms involved with the plans welcomed Miller's announcement but remained cautious as world markets continued to lose ground.

"We positively react on the announcement of no changes in the investment program, but realistically understand that changes are likely to happen," said Pyotr Bezukladnikov with the engineering firm E4 Group.

Russian Energy Minister Sergei Shmatko is said to have created special commissions to examine regional power stations to determine which projects were viable.