Russian president Vladimir Putin has said that Russia should consider recapitalizing state gas company Gazprom (GAZP.MCX) to build up new infrastructure following the country’s 30-year, US$400 billion gas deal with China, Reuters reported. Boosting Gazprom’s capital would put additional pressure on the Russian economy, already slowing due to a lack of reforms Western sanctions over the annexation of Crimea, which have weighed on the ruble and caused triggered capital outflows. Putin did not say how Gazprom should be recapitalized but hinted it could be done from Russia’s gold and foreign exchange reserves.
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