Russians buying Azeri gas

As part of the working visit of Russian President Medvedev to Baku the Russian state-owned company Gazprom and the Azeri state oil company SOCAR have signed a document concerning the purchase by the Russian side of Azeri natural gas. Azeri President Ilham Aliyev has stated that this gas supply will start from 2010. Head of Gazprom Aleksey Miller has stated that initially the deal will cover a small amount of Azeri gas.

Until 2007 Gazprom provided Azerbaijan with natural gas but later it increased its prices and Azerbaijan currently satisfies its own natural gas needs. In 2008 Gazprom offered to buy all Azerbaijan’s natural gas output.

Of course Russia does not actually need Azeri gas but it does not want another supplier transporting gas to Europe and bypassing Russia when doing so.