Gazprom Raises 2016 Investments by 1%

Gazprom’s board has approved adjustments to its 2016 investment, budget, and cost-cutting programmes, the Russian state-run giant said October 18.

Overall investments will be rubles 853bn ($13.5bn), rubles 11bn (or 1.3%) higher than the plan approved ten months ago. Of that, rubles 173.2bn ($2.75bn) will be for long-term financial investments, with rubles 10.4bn ($165mn) intended for acquiring non-current assets.

In line with Gazprom's adjusted budget for 2016, external borrowings will be rubles 187.8bn The approved financial plan will provide for a full coverage of Gazprom's liabilities without a deficit.

The revised 2016 cost-cutting plan foresees an expected cumulative effect of rubles 16bn. Gazprom said the 1.3% rise in 2016 investments “can be primarily attributed to an increase in long-term financial investments” but gave no more details.

Mark Smedley