Gazprom focuses on Far East

KHABAROVSK, Russia, Sept. 8 (UPI) -- Investments in the Far East of Russia will increase by as much as 81 percent despite the financial crisis gripping world markets, officials from Gazprom said.

Alexander Ananenkov, the deputy chief executive at the Russian energy monopoly, said investments in the Far East for 2010 would exceed $3.2 billion, RIA Novosti reports.

"Despite the economic crisis, Gazprom continues to finance the Eastern projects in full," he said.

Gazprom faced recent criticism over its spending habits during the current economic crisis. Profits for the energy giant for the first half of the year were down more than 40 percent, though net profits for the second quarter quadrupled.

Ananenkov said part of its investments would go to finance the construction of a gas pipeline from Sakhalin island to onshore facilities at Vladivostok, Russia's largest port city on the Pacific Ocean.

The pipeline will run through the Far East with an annual capacity of 1.1 trillion cubic feet of gas.

Meanwhile, Russian President Dmitry Medvedev met with Gazprom chief Alexei Miller to discuss gas cooperation in the Caspian market.

Russia aims to diversify its energy sector by expanding its European and Asian footprints. Its current market relies largely on Ukrainian transit options.