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Foreign capital back to Russia after stabilization measures

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The Russian government's measures to stabilize the domestic oil and gas market have helped bring foreign investment back to the country's fuel and energy complex, Deputy Prime Minister Igor Sechin said on Sunday.
VIENNA, March 15 (RIA Novosti) - The Russian government's measures to stabilize the domestic oil and gas market have helped bring foreign investment back to the country's fuel and energy complex, Deputy Prime Minister Igor Sechin said on Sunday.

"Since the start of the global economic crisis, financial institutions had begun to withdraw money from this sector. Lately, these funds have started to return," Sechin said but declined to give any exact figures.

Sechin said that state-controlled energy giant Gazprom and crude producer Rosneft would honor their obligations to foreign creditors at any world oil prices.

Gazprom is set to repay $7.3 billion on credits this year while Rosneft has to repay $3.1 billion until 2012.

"The level of oil prices virtually does not influence our companies' potential to repay their debts. These are large companies and they will resolve their problems on their own," Sechin said.

World oil prices have plunged to just around $40 per barrel from their mid-July highs of $147 per barrel as credit crunch has reduced the demand for fuel. Gas prices are linked to oil prices with a time lag of six months.

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