Chronicling the rise of Russia and the end of American hegemony

Friday, March 14, 2008

  • Gazprom's CEO said on Friday that the average price for natural gas for Europe in 2008 could reach $400 per 1,000 cubic meters, 13% more than previously expected. "The price in Europe now exceeds $370. We believe the average price in 2008 could be $378 and could even reach $400 per 1,000 cubic meters," Alexei Miller said at a meeting with Russian President Vladimir Putin.

    Gazprom also announced plans on Friday to hold talks soon with importers of Central Asian natural gas following an announcement by regional producers that they would charge European-level prices from 2009. Uzbekistan, Turkmenistan and Kazakhstan said on Tuesday that they would begin exporting their natural gas at European-level prices from 2009. "The switchover to market pricing principles requires serious dialogue, so we are planning to start talks without delay," Miller said. Kazmunaigaz, the Kazakh gas monopoly, warned on Thursday about the possibility that it could raise tariffs to a European price level for the transit of Central Asian gas via Kazakhstan. The Gazprom CEO said the company was currently switching to market gas contracts with the former Soviet republics, and was already using market pricing for gas supplies to the Baltic nations story