The Russian party was represented at the meeting by the delegation of the Unified Energy System of Russia.

"Russian officials repeated that deep-rooted energy cooperation is of great importance for both parties. Businesslike and constructive approach ensures that compromise can be made in all issues," he said.

Asgarov said that the parties didn't reach full agreement, and there is a need for additional discussions.

Azerbaijan is receiving Russian electricity supplies through Yashma-Derbend supply line in capacity of 300 megawatts. The supply line enables to transfer 1 billion kilowatts/h of electricity a year.

Russia warned Azerbaijan that it would only supply 60 megawatts of electricity in 2007, claiming it faces energy shortage.

Azerbaijan imported 1.003 billion kilowatts at a price of 2.8 cents per kilowatt during 2005. Russia supplied has 770 million kilowatts/h of electricity to Azerbaijan up to now this year at a price of 3.636 cents. Azerbaijan said it intends to import 700m kilowatts next year. Russia warned that it would charge Baku 4.1 cents per kilowatts.

Azerbaijan insists on the current prices and amount. But, negotiations with Russian still remain ineffective.

Azerbaijan is expected to import Iranian electricity if Russia makes no compromise, APA reports.