MOSCOW, November 25 (RIA Novosti, Peter Lavelle) - Russia's state-controlled energy super giant Gazprom has initiated a campaign to bring CIS gas prices closer to global norms and starting this process directed toward the ex-Soviet states of Georgia and Ukraine.
Gazprom is seeking a 75% increase in the price Georgia pays for gas from 2006 to $110 per thousand cubic meters, Deputy Chief Executive Officer Alexander Medvedev said Thursday. Medvedev said prices for Armenia and Azerbaijan should also rise to $110 per thousand cubic meters.
The campaign comes after Prime Minister Mikhail Fradkov cancelled an official visit to Ukraine due to a dispute over natural gas prices. Gazprom is demanding that Ukraine pay $160 per thousand cubic meters from 2006 vs. the current $50. Approximately 80% of Russia's exports to western Europe transit through Ukraine. Considering the leverage Ukraine has over Gazprom's exports, the market consensus is that a compromise will be reached.
