Azerbaijan Needs No Russia for Crude Supplies

Fradkov arrived in Baku yesterday to attend closing of Russia's Year in Azerbaijan and to negotiate energy cooperation, including gas deliveries from Russia.

In October, Gazprom curtailed the 2007 gas offer to 1.5 billion cu meters, but hiked the price to $230/ths cu meters. So, Azerbaijan was expected to insist on maintaining the price at $110/ths cu meters to $130/ths cu meters and widening the amount to 3 billion cu meters.

Bargaining on gas is of no interest to Azerbaijan, Rasizade made clear from the very beginning. Starting from January 1, 2007, the country can independently cover its gas requirements thanks to Shakh-Deniz field developed by BP.

Moreover, Azerbaijan appears in no mood to discuss oil supplies via Baku-Novorossiisk pipeline. Azeri President Ilham Aliev ordered to study the chances of abandoning the route controlled by Russia's Transneft. The state oil company of Azerbaijan, GNKAR, won’t seek reduction in tariff rates of Transneft, which stand at $15/ton vs. $3/ton when shipping to Georgian port of Supsa, Rasizade explained in a condescending manner yesterday. Kommersant