Gazprom to use market principles with all partners - CEO

MOSCOW, December 10 (RIA Novosti) - Gazprom will use market principles in its relations with all foreign partners without exception, the state-owned energy giant's chief executive said Friday, speaking at a ceremony marking the start of construction work on the North European Gas Pipeline, a $4.7 billion energy project, in the town of Babayevo in the Vologda region 300 miles northeast of Moscow.

Alexei Miller recalled that Ukrainian company Naftogaz Ukrainy refused to negotiate new terms for natural gas transit and supplies in 2006.

He said the Ukrainian side was trying to secure preferential conditions for gas supplies by taking advantage of Gazprom's dependence on its transit routes to Europe via Ukraine.

Miller attributed the slightly lower gas prices for Belarus to the fact that Russia and Belarus were building a Union State. "Furthermore, Belarus is the only country where Gazprom owns the export section of the pipeline (Yamal-Europe)," he said, adding that talks were under way on placing Belarus' entire gas transport system under Gazprom's control.

"Gazprom's policy toward Belarus is economically viable and beneficial for all groups of our shareholders - both the state and private investors," Miller said.