`Gazprom` TERM BEGINS TALKS WITH TURKMENISTAN
Yesterday, the Gazprom has begun urgent talks with Turkmenistan, to persuade her to lift the embargo, threatening a key gas supply, Russia#39;s largest energy company. Gazprom is now paying more attention to Central Asia in search of resources. Alexei Miller, the head of Gazprom, went to Ashgabat, capital of Turkmenistan, to ask President Saparmurat Niyazov to lift the embargo imposed four months ago, after Russia refused to accept the price increase. Niyazov tactics to achieve their goals crude methods reflects the mood of suppliers of energy resources, the efforts of the authorities-sensing in harsh conditions of the international energy market. This embargo will also cause concern in Europe, which is dependent on Russian gas supplies by 44%, with most of these supplies is through the Gazprom.
Turkmenistan is the second largest in Central Asia natural gas reserves. Under the terms of the contract in Turkmenistan this year should put the Gazprom 7 billion cubic meters of gas. And in the next three years, the supply could increase to 70 billion cubic meters a year.
In the past year, Gazprm exported to Europe, 157 billion cubic meters of gas. The talks this week are likely to be severe. Russia does not intend to revise the terms of the contract with Turkmenistan, - said this week the deputy chairman of Gazprom Alexander Medvedev. Turkmen government requires $ 58 per thousand cubic meters of its natural gas, which is 30% more than in the current contract to supply, under which Turkmenistan receives half pay in cash and the other half on a barter basis.
Analysts, however, believe that Turkmenistan sets high prices for regulated Russian market, where the Gazprom sells more than a third of its products. For someone who has so many friends, Turkmenbashi is playing a dangerous game - says Jonathan Stern, head of the gas sector at the Oxford Institute for Energy Studies. - A man that needs to raise the price by 30%, and then when you give up, stopping in the middle of winter delivery - is not the one who wants to have a deal. Discussions on Turkmen gas supplies come just at a time when, after a popular uprising in Kyrgyzstan last month, which resulted in the overthrow of the government of President Askar Akayev, Russia is growing concern over the security in Central Asia. Vladimir Putin, President of Russia, Niyazov called after the overthrow of Akayev and persistently asked the Turkmen leader to re-open the gas valve. During the Soviet period, Turkmenistan was an important producer of gas.
However, in the first decade after independence, communication with Moscow was overshadowed by the controversy about the price and supply drops. In 2000, when Putin came to power, Russia has launched an initiative for establishing a gas OPEC analogue-based alliance with Turkmenistan, Kazakhstan and Uzbekistan. All three countries have substantial reserves of gas, but Turkmenistan - the only one where there are developed gas fields. Gazprom may try to make an alternative deal to supply with Kazakhstan and Uzbekistan.
Yesterday, the Gazprom has begun urgent talks with Turkmenistan, to persuade her to lift the embargo, threatening a key gas supply, Russia#39;s largest energy company. Gazprom is now paying more attention to Central Asia in search of resources. Alexei Miller, the head of Gazprom, went to Ashgabat, capital of Turkmenistan, to ask President Saparmurat Niyazov to lift the embargo imposed four months ago, after Russia refused to accept the price increase.
Niyazov tactics to achieve their goals crude methods reflects the mood of suppliers of energy resources, the efforts of the authorities-sensing in harsh conditions of the international energy market. This embargo will also cause concern in Europe, which is dependent on Russian gas supplies by 44%, with most of these supplies is through the Gazprom. Turkmenistan is the second largest in Central Asia natural gas reserves. Under the terms of the contract in Turkmenistan this year should put the Gazprom 7 billion cubic meters of gas. And in the next three years, the supply could increase to 70 billion cubic meters a year.
In the past year, Gazprm exported to Europe, 157 billion cubic meters of gas. The talks this week are likely to be severe. Russia does not intend to revise the terms of the contract with Turkmenistan, - said this week the deputy chairman of Gazprom Alexander Medvedev.
Turkmen government requires $ 58 per thousand cubic meters of its natural gas, which is 30% more than in the current contract to supply, under which Turkmenistan receives half pay in cash and the other half on a barter basis. Analysts, however, believe that Turkmenistan sets high prices for regulated Russian market, where the Gazprom sells more than a third of its products. For someone who has so many friends, Turkmenbashi is playing a dangerous game - says Jonathan Stern, head of the gas sector at the Oxford Institute for Energy Studies. - A man that needs to raise the price by 30%, and then when you give up, stopping in the middle of winter delivery - is not the one who wants to have a deal. Discussions on Turkmen gas supplies come just at a time when, after a popular uprising in Kyrgyzstan last month, which resulted in the overthrow of the government of President Askar Akayev, Russia is growing concern over the security in Central Asia. Vladimir Putin, President of Russia, Niyazov called after the overthrow of Akayev and persistently asked the Turkmen leader to re-open the gas valve.
During the Soviet period, Turkmenistan was an important producer of gas. However, in the first decade after independence, communication with Moscow was overshadowed by the controversy about the price and supply drops. In 2000, when Putin came to power, Russia has launched an initiative for establishing a gas OPEC analogue-based alliance with Turkmenistan, Kazakhstan and Uzbekistan.
All three countries have substantial reserves of gas, but Turkmenistan - the only one where there are developed gas fields. Gazprom may try to make an alternative deal to supply with Kazakhstan and Uzbekistan. Yesterday, the Gazprom has begun urgent talks with Turkmenistan, to persuade her to lift the embargo, threatening a key gas supply, Russia#39;s largest energy company. Gazprom is now paying more attention to Central Asia in search of resources. Alexei Miller, the head of Gazprom, went to Ashgabat, capital of Turkmenistan, to ask President Saparmurat Niyazov to lift the embargo imposed four months ago, after Russia refused to accept the price increase.
Niyazov tactics to achieve their goals crude methods reflects the mood of suppliers of energy resources, the efforts of the authorities-sensing in harsh conditions of the international energy market. This embargo will also cause concern in Europe, which is dependent on Russian gas supplies by 44%, with most of these supplies is through the Gazprom. Turkmenistan is the second largest in Central Asia natural gas reserves. Under the terms of the contract in Turkmenistan this year should put the Gazprom 7 billion cubic meters of gas. And in the next three years, the supply could increase to 70 billion cubic meters a year.
In the past year, Gazprm exported to Europe, 157 billion cubic meters of gas. The talks this week are likely to be severe. Russia does not intend to revise the terms of the contract with Turkmenistan, - said this week the deputy chairman of Gazprom Alexander Medvedev.
