Putin Asks Russian Oil, Gas Firms to Use High Prices to Cut Debt

Article content(Bloomberg) — Russia’s President Vladimir Putin urged nation’s oil and gas producers to take advantage of sky-rocketing commodities prices to reduce their debt, because the spike will be temporary. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentWith the Strait of Hormuz being “effectively closed” amid the Middle East conflict, oil production relying on the route “risks stopping completely” within a month, Putin said at a meeting with government officials and energy executives. It will take “weeks, if not a month” to restore liquefied natural gas capacity in the region and it’s “impossible to quickly compensate for the lost volumes,” he added. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentRussia “must understand that the current high commodity prices are certainly temporary” and must proceed from that, Putin said. “Changes in the balance of supply and demand for hydrocarbons will, of course, lead to a new stable price reality. That will inevitably happen, so it’s important for Russian energy companies to take advantage of the current moment, including by using additional export revenue to reduce their debt burden” to Russian banks.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentPutin asked the government and the central bank to monitor this process.

Deputy Prime Minister Alexander Novak, who oversees nation’s energy sector, and Bank of Russia Governor Elvira Nabiullina were among the participants in the meeting, alongside with Rosneft PJSC and Gazprom PJSC Chief Executive Officers Igor Sechin and Alexey Miller, respectively. Article contentRussia will continue to supply oil and gas to reliable partners not only in the Asian-Pacific region, but also in eastern Europe, in particular to Hungary and Slovakia, Putin said. Article contentAt the same time, the government in Moscow is considering ending most sales of natural gas to the European Union right now, and not wait until the region gradually bans imports both of pipeline and liquefied gas from Russia by late 2027.Article contentREAD: Putin’s Suggestion to Divert LNG From EU Right Now Faces HurdlesArticle contentStill, Russia is ready to work with the bloc and supply oil and gas “if European companies, European buyers suddenly decide to re-orient themselves and provide us with long–term, sustainable cooperation,” Putin said. “But we need some kind of signals from them that they are ready and willing to work too and will provide us with this stability.”Article contentTrending Here's why bets are rising for interest rate hikes including for Canada Economy Trump insists 'I have a plan' as oil prices surge on Iran war Oil & Gas Posthaste: How $100 oil could do Canada's economy more harm than good News Emerging-Market Currencies Pare Drop as Oil, Dollar Surge Fade PMN Business Canadians blasé about CUSMA misunderstand the market risks Investor Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Here's why bets are rising for interest rate hikes including for Canada Economy Trump insists 'I have a plan' as oil prices surge on Iran war Oil & Gas Posthaste: How $100 oil could do Canada's economy more harm than good News Emerging-Market Currencies Pare Drop as Oil, Dollar Surge Fade PMN Business Canadians blasé about CUSMA misunderstand the market risks Investor