Russian President to Discuss Gas Prices on Turkmenistan Visit

Posted on: Friday, 4 July 2008, 03:00 CDT

Text of report in English by Russian state news agency ITAR-TASS

Moscow, 3 July: Russian President Dmitriy Medvedev will discuss with his Turkmen colleague Gurbanguly Berdimuhamedow cooperation in the energy sphere. The Russian head of state will pay an official visit to Turkmenistan on 4-5 July.

"The main attention during the visit will be given to bilateral relations, cooperation in the fuel and energy sphere," Russian presidential aide Sergey Prikhodko told ITAR-TASS. According to him, "the fuel and energy complex plays a special role in cooperation between the two countries".

"At the modern stage the most important thing is the implementation of multilateral agreements on the construction of the Caspian pipeline and development of gas transportation capacities in Central Asia in which Russia and Turkmenistan are participating," Prikhodko stressed.

"After the gradual transition to world prices the issue of the reorientation of these flows to other countries will be removed from the agenda," Prikhodko said.

"Turkmenistan had earlier faced a major choice - where to supply gas or to agree with Uzbekistan and build a pipeline to China and possibly to Iran. But if we raise the purchase price then the cost efficiency of supplies to Russia or via Russia will grow. Because it is one thing to build the Caspian gas pipeline, and another to build a new pipe across new territories with new risks," the official explained.

Therefore Russia "is ready to buy (gas) at increased prices," Prikhodko said. "Certainly, the price issue arises, but I think that we will reach an agreement," the presidential aide said.

Russia, Turkmenistan and Kazakhstan announced that they are raising prices for their natural gas up to the average European level before 2009. Russia's natural gas giant Gazprom is currently in talks with its Asian partners on this matter.

Medvedev's aide noted that in connection with the small throughput capacity of the Central Asia-Centre gas pipeline, "Russia, Kazakhstan and Turkmenistan signed a trilateral agreement on the construction of the Caspian gas pipeline".

"The project is in progress, and with the completion of the construction, we will be able to increase the volumes of Turkmen gas supplies with the benefit for all sides," Prikhodko pointed out.

Originally published by ITAR-TASS news agency, Moscow, in English 1558 3 Jul 08.

(c) 2008 BBC Monitoring Former Soviet Union. Provided by ProQuest Information and Learning. All rights Reserved.


Source: BBC Monitoring Former Soviet Union

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