PRESS: Russia’s Vekselberg sees oil price over $40/bbl in mid-term

MOSCOW, Mar 28 (PRIME) -- Russian billionaire businessman Viktor Vekselberg, the key owner of multi-industry holding Renova Group, expects the oil price at over U.S. $40 per barrel in the mid-term, he told in an interview with business daily Vedomosti published on Monday.

“I surely do not believe in the price of $30 per barrel in the mid-term. This is not much,” he said. “It will be higher. And from my point of view, it will be over $40. Prices should return to this level this year,” he said.

“But there will be fluctuations, because we have a big imbalance between demand and supply,” he said.

Vekselberg said the structure of the Russian economy should be changed to lessen dependence on oil revenues.

He also said he had no plans to invest in the oil industry and was interested in the innovation business, high-tech, and alternative energy.

He also said he had no plans to expand the share of foreign assets. “We do not have such goal. We have strategic assets and we will develop them,” he said.

Vekselberg also said he invested money from the sale of a stake in TNK-BP in the Russian power sector, including in the development of the alternative energy.

“As of today, total investments in our power assets approach U.S. $4 billion, and we have significantly reduced our debt to Sberbank, which occurred as a result of investments in T Plus. Hevel – this is alternative energy, solar parks. Much was invested in Airports of Regions,” he said.

Renova is ready to sell a minority stake in Airports of Regions to foreign partners, Vekselberg also said. “We will keep a controlling stake. We are talking with the Russian Direct Investment Fund (RDIF), foreign investors are standing behind it. We want to attract more funds to develop this business. We have big projects,” he said.

He also said Renova was in talks with VTB Bank to buy a controlling stake in Northern Capital Gateway, which operates Pulkovo Airport in St. Petersburg.

End