The head of Russian gas giant OAO Gazprom (GAZP.RS) Friday warned European countries not to turn their ambition to diversify energy supply routes away from Russia into a "fetish."
"Europe's aim to diversify its energy suppliers is understandable, but shouldn't turn into a fetish," Gazprom Chief Executive Alexei Miller told an annual shareholder meeting on Friday.
Miller warned that diversification away from Russia to new suppliers with fewer reserves and less political stability will lead to a "paradox." Diversification will grow, but it will happen at the expense of stability and reliability, he said.
January's cutoff of Russian natural gas to Europe via Ukraine due to a pricing dispute raised doubts among European officials and consumers over Russia's reliability as an energy partner.
Gazprom, the world's biggest producer of natural gas, provides a quarter of Europe's gas needs. Around 80% of that is shipped through Ukraine.
Falling European gas consumption this year has forced the company to lower export volumes significantly.
Gazprom said Thursday it may lower capital spending this year by 30% from the original plan. Earlier this month, it said lower demand at home and in Europe led it to delay the launch of its key Bovanenkovo field by a year to 2012.
"We adjust our plans, not because we can't find the money for them, but because there won't be demand for the planned volumes," Miller said.
"The [economic] crisis doesn't affect our investment program," he added.