"Gazprom" offers Azerbaijan European gas prices

The offer made by the "Gazprom" on gas purchase from Azerbaijan is a long-term deal based on the commercial European price. This news was made public on June 4 by Vasily Istratov, Russia's Ambassador to Baku, in a press conference.

Last Monday, on June 2, Alexei Miller, "Gazprom" board chairman, during his meeting with President of Azerbaijan Ilham Aliev, made an official offer to purchase Azerbaijani gas.

According to Mr Istratov, the "Gazprom" offers to buy Azerbaijani gas under the European price minus transportation expenses. "Political guarantees can also be assumed that the contract will have a long-term basis, and its parameters won't be revised. However, it's clear that in any case the final decision is with the seller, that is, with Azerbaijan," said the Ambassador.

In his turn, Rovnag Abdullaev, head of the State Oil Company of the Azerbaijani Republic, has declared that preliminary discussions had taken place on the offer of "Gazprom", and that negotiations will be continued.

However, Sabit Bagirov, head of the Centre for Economic and Political Studies and ex-president of the State Oil Company of Azerbaijan, said in his conversation with the "Caucasian Knot" correspondent that he was sceptical in the prospects of selling Azerbaijani gas to the "Gazprom". According to the expert, currently Azerbaijan does not possess enough gas volumes to make sales to the "Gazprom". Besides, Azerbaijani gas is already delivered to Europe under world prices, therefore, there is no sense in the "Gazprom" offer.