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Russia Warns Azerbaijan of Cuts in Electricity, Gas Supplies in 2007

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  • Russia Warns Azerbaijan of Cuts in Electricity, Gas Supplies in 2007

    Voice of America
    Nov 23 2006

    Russia Warns Azerbaijan of Cuts Electricity, Gas Supplies in 2007
    By VOA News
    23 November 2006

    Russia is warning Azerbaijan of possible cuts in the amount of both
    electricity and natural gas it will provide that country next year.

    Marlen Askerov, the vice president of Azerbaijani's state power
    company Azerenergy, said Thursday that Moscow has proposed sending
    the Azerbaijanis one-fifth the amount of electricity it supplied them
    a year ago. Starting next year, Russia says it will supply only 60
    megawatts per day - down from 300 megawatts per day last year.

    Askerov said Moscow is also proposing to raise the price of
    electricity by 13 percent.

    Wednesday, Russia's state-run gas monopoly Gazprom announced plans to
    cut natural gas supplies to Azerbaijan beginning next year. Gazprom
    said it will supply Russia's oil-and-gas rich neighbor with 1.5
    billion cubic meters of gas in 2007.

    Both moves follow Azerbaijani pledges to supply more gas to the
    country's neighbors, such as Georgia, from its own natural gas fields
    in the Caspian Sea. Gazprom says Azerbaijan can still meet its
    domestic needs despite the cut in natural gas supplies.

    Gazprom has also tightened supplies or announced price hikes for
    other countries such as Belarus and Armenia. Analysts say the moves
    are designed to allow it to sell more energy on the lucrative western
    European markets.

    Some information for this report was provided by AP Bloomberg and
    Reuters.
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