RUSSIA CAN INCREASE GAS SUPPLIES TO FINLAND, IF NEED BE - PREMIER FRADKOV

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HELSINKI, October 26 (RIA Novosti) - Russia can increase its gas supply to Finland on demand, Russian Prime Minister Mikhail Fradkov told journalists after meeting with his Finnish analogue Matti Vanhanen.

"We can expand gas supplies on demand from our colleagues", he has said.

The Russian prime minister positively assessed prospective cooperation between the two countries in the gas sector.

Building of a North European gas pipeline is now under consideration. It is a large project in which the Finnish side plays a serious role, Fradkov said.

In turn, Vanhanen said that he recently talked the matter with Gazprom head Alexei Miller and was glad with the outcome.

The Finnish prime minister sees success in the 30-year cooperation between Russia and Finland in the supply of Russian gas. "The volume of gas supplies is linked to the increased demand", the Finnish prime minister said.

Fradkov noted that, on results of the forest summit in Helsinki, he gets the impression that Finnish business is tuned to active work with the Russian colleagues, particularly in forest management.

"In some sectors, results are at hand. The forest sector is one of them", Fradkov said.

He is sure that the two states can, by pooling their efforts, make use of the specific advantages in Finland and Russia in timber processing and reach stable positions at the world level.

"This requires a serious bilateral effort, formation of a legal base, major capital inputs and administrative regulation by the two governments. Contacts should not be limited to only the export of Russian timber", Fradkov said. Simultaneously, problems of transportation have to be resolved, he noted.

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