Monday, December 25, 2006

Azeris warn Russia on gas prices

The president of Azerbaijan has threatened to stop
importing gas from Russia after Gazprom said it would more than double
the price of its supplies.


Ilham Aliyev's statement came a day after neighbouring
Georgia agreed to pay the same increased price for gas from the Russian
state-backed company.


Critics say Moscow is using gas as a political weapon, but Gazprom insists the new price reflects market rates.


Azerbaijan is the latest country to complain about Russian gas price rises.


These were unusually strong words from President Aliyev,
who said the suggested increase was against the spirit of Azeri-Russian
relations.


'Commercial blackmail'


Azerbaijan is an ally of the United States, but has also tried to maintain good relations with Moscow.


It is rich in oil, but still needs to import gas.


President Aliyev warned that if Azerbaijan could not
make a deal with Gazprom, it might reduce its oil exports to Russia to
compensate.


"I have decided to find a way out of the situation with
minimum losses for Azerbaijan, and at the same time with dignity. I
cannot allow Azerbaijan to be turned into a country subject to elements
of commercial blackmail," he said.


In recent weeks, Azerbaijan's neighbour, Georgia, had also expressed defiance.


The Georgian government initially rejected the price
increase, saying it was being punished by Moscow for its pro-Western
policies.


But it was not able to find alternative supplies
immediately, and with Gazprom threatening to cut off the gas at the end
of this year, Georgia eventually gave in and agreed to pay Russia's
price.


The Russian gas company says it is simply ending the subsidies it used to give to former Soviet republics.


But critics argue that Moscow is aggressively seeking to
consolidate its economic power, at a time of widespread fears about
possible energy shortages.





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