Wednesday, 8 September 2010

Azerbaijan and Russia sign another gas deal

Gazprom has secured an agreement to supply State Oil Company of Azerbaijan Republic (SOCAR) with double the amount of Russian gas in 2011, expected to total at 2billion m³. Under the agreement, Azerbaijan is expected to increase gas imports from Russian even further by 2012.

The agreement signed by Russia's President Dmitry Medvedev and Azerbaijan's President Ilham Aliyev is the third gas purchase agreement signed in the past year between the two countries. The first agreement, signed in October last year, provided for Russian purchases of 500million m³ of gas annually.

During a joint news conference on Friday 3rd September , President Aliyev said the gas deal with Russia was “open and sincere.” He also took the opportunity to reassure Azerbaijan's Western partners that energy co-operation with Russia would not come at their expense, saying "We don't see our work in the gas sector as an opportunity for unfounded competition. We are working not on the basis of political concerns, but economic practice".

Talking about the latest deal with Azerbaijan, President Medvedev said that both countries are serious, “gas suppliers,” and will not create obstacles for one another when it come to co-operation with international energy majors.

Source: EurasiaNet

For more news and expert analysis about the Caspian region, please see Caspian Focus.

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