Turkmenistan: Despite Upbeat Talk, Still No Export Deal with Gazprom

Gazprom remains prepared to resume natural gas purchases from Turkmenistan, but after weeks of maneuvering, company officials have been unable to reach agreement with Turkmen leaders.

"We are conducting productive talks with our partners from Turkmenistan and welcome the prospect of resumed gas exports to Russia in the near future," Russian news agencies quoted Gazprom's second-in-command, Alexander Medvedev, as saying on October 26.

Russia's Energy Minister, Sergei Shmatko, added discussions between Ashgabat and Moscow are "good and reasonable" but warned "this issue should be resolved in a peaceful manner and without political influence."

Gazprom's bargaining position may be influenced by demands from European consumers to recalculate Moscow's export price for gas, Russian broadsheet Nezavisimaya Gazeta reported on October 27. "Gazprom's strategic plans, based on expectations of rising prices and increasing consumption in Europe, are under threat. Gas prices in the spot (short) market have plummeted and European consumers are refusing en masse to consume Gazprom's overly expensive gas," the report said.