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Russia intends to buy over 1 billion cubic meters of Azerbaijani gas: minister

Oil&Gas Materials 22 May 2009 15:14 (UTC +04:00)

Azerbaijan, Baku, May 22 / Trend , E. Ismayilov/ 

Negotiations on sale of Azerbaijani gas to Russia have not yielded results yet, Azerbaijani Industry and Energy Minister Natiq Aliyev said.

"The talks are being held at the moment. Frankly, no results have been achieved yet," Aliyev said.  

The minister said sale of a gas is not an easy process. It requires huge capital investments and reconstruction of already existing infrastructure. The volume of gas to be sold to Russia is being discussed as "0.5-1 billion cubic meters are the main point."  

Earlier SOCAR and Gazprom signed a memorandum on understanding according to which agreement was reached to start negotiations to coordinate conditions of sale of Azerbaijani gas and launch first supply on January 2010 until Azerbaijan-Russia border (DAF). The memorandum calls for designing cooperation program for the exchange of experiences, conducting courses, seminars and visits to production facilities by specialists in an effort to exchange information.

Aliyev said "Russia offered to buy Azerbaijani gas at European prices. But one must learn what Russia means." Various current, transit and fiscal expenses emerge during transport of gas. So, this is not an easy issue and talks will continue, he said.

Aliyev said the country who sells gas must be confident of long-term supplies. Non-fulfillment of terms is usually followed by sanctions. Therefore, most suitable offer must be chosen. 

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