Kremlin ready to prop up energy companies if they need it

Russian energy companies feeling the squeeze from Western economic sanctions can appeal for help from the government, the deputy energy minister said Thursday.

Russia relies heavily on oil and natural gas revenues to support its economy. When sanctions targeting Russian energy companies went into force earlier this year, Andrei Belousov, an economic adviser to the Kremlin, said the Central Bank of Russia may sell some of its foreign currencies to blacklisted companies in an effort to offset the punitive measures.

Deputy Energy Minister Kirill Molodtsov said Thursday the federal government was on standby should sanctions-strapped companies need support.

"In a situation when the companies came under sanctions, they can appeal to the government for support, if there is such a need," he said.

The European Bank for Reconstruction and Development said last week sanctions were taking a toll on the Russian economy.

Russian Prime Minister Dmitry Medvedev said efforts must be made to keep inflation at the lowest rate possible.