Azerbaijan: Moscow and Baku Conclude Gas Export Deal

Following up on earlier tentative agreements, Russian energy giant Gazprom and Azerbaijan's state-controlled entity, SOCAR, have signed a contract to start gas supplies to Russia. The deal confirms Moscow's intent to steps up efforts to increase its export share of Azerbaijan's hydrocarbon riches.

Gazprom chief Alexei Miller said that Azerbaijan had committed to exporting as many as 500 million cubic meters of gas annually to Russia. "According to the contract, Gazprom will be kept informed of [an] increase in production levels? and there will be an opportunity of selling additional gas to Russia," Miller was quoted by the APA news agency as saying.

The price offered by Moscow was not disclosed. Miller and SOCAR President Rovnag Adbulayev said that the Russian fee matches world prices and will be revised on a quarterly basis.