GAZPROM TO EXPAND SUPPLIES TO WESTERN EUROPE

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MOSCOW, December 8 (RIA Novosti) - Gazprom is going to expand supplies to Western Europe in 2005, the company's head Aleksei Miller said meeting with Russian President Vladimir Putin.

"The supplies will be increased to 145 bln cubic metres," Mr. Miller specified.

Vladimir Putin responded that this must not do harm to the domestic consumer. The president believes that Gazprom must gradually increase the correlation of volumes in favour of the domestic market.

"Today gas supplies onto the domestic market are twice as much as to Western Europe, and the correlation will remain the same because Gazprom intends to step up gas production to 547 bln cubic metres next year," Aleksei Miller said.

"You should change the ratio in favour of the domestic market in the future. We must think about our country and the economy, first of all," Putin insisted.

"It is clear that it is more profitable for Gazprom to export gas, I mean gas export keeps Gazprom afloat, because we have not achieved a profitable level of gas sales on the domestic market," the head of state asserted.

"Nevertheless, we must promote gasification, first of all in the household sector, and as the domestic market grows more attractive, we must change the ratio in its favour," President Putin pointed out.

"Recently we have reached agreements with constituent members of the Russian Federation, worked out programmes of gasification, thus stepping up gasification rates by 100% over the last 2 years," the head of Gazprom reported.

"First of all, we focus on regions falling behind the country's average in terms of gasification rates," Mr. Miller noted. According to him, the country's average gasification rate is 52%.

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