Russian energy company Gazprom said Tuesday it was trimming expenses by more than $200 million in an effort to streamline operations going forward.

The board of directors said via state news agency Sputnik, formerly RIA Novosti, it was cutting expenses by $238.7 million and expecting around $1.65 billion in foreign loans.

Gazprom's disclosure comes at a time when Russia is struggling to keep its economy in check. Western sanctions imposed in response to Russian policies and low oil prices have pushed the economy to the brink of recession.

The Russian Central Bank last week raised its key interest rate by 6.5 percent to 17 percent in an effort to arrest the decline of the nation's currency.

Russia relies heavily on oil and gas revenues for economic health. With oil prices falling, Russian President Vladimir Putin said during his annual press conference last week that many of the problems in the Russian economy were caused by "external factors."

Gazprom is a lead supplier of natural gas to the European market. The company Monday downgraded its expectations of future sales to a struggling eurozone by 9 percent.

Gazprom Deputy Chairman Alexander Medvedev said demand would eventually return for Europe.

"There is only one thing," he said. "Europe has to determine its policies regarding natural gas."

Putin recently declared an end to the South Stream natural gas project for Europe. Designed as a means to avoid sensitive territory in Ukraine, the conventional courier for Russian natural gas to Europe, the project has come up against opposition from Europe. Lawmakers in Brussels are wary of companies like Gazprom, which control gas production and distribution methods.

On the status of the Russian economy, Putin said the situation would be remedied within two years.