MOSCOW, Dec. 10 (UPI) -- Russian energy giant Gazprom has no plans to cut spending in 2009, despite the decline in oil prices and the faltering economy, officials said.
Gazprom deputy chief Alexander Medvedev said in an interview with the Financial Times that despite the decline in oil and gas prices, the Russian monopoly could proceed with its planned projects because of lower costs.
"One positive side of the crisis is that the cost of materials and equipment will inevitably become cheaper," he said. "The cost of supplies was incredibly high, and it was the suppliers who were benefiting."
Medvedev noted projects including the Nord Stream and South Stream natural gas pipelines to Europe were still positive ventures despite the economic downturn.
The company has seen its share and market capitalization drop precipitously during the global economic downturn, dropping from the third-largest, with a value of around $350 billion, to 35th, or less than $100 billion.
Medvedev noted the decline in energy prices was a temporary consequence of the recession hitting the world's largest economies, noting $100 per barrel oil was likely in the future.
"The era of cheap energy is obviously over," he said, pointing to reports from the International Energy Agency.
